WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2019 Clock Mirror Combined Sales $ 145,800 $ 62,500 $ 207,500 Cost of goods sold 71,050 38,750 109,800 Gross profit 73,950 23,750 97,780 Direct expenses Sales salaries 20,150 7,800 27,150 Advertising 1,230 575 1,805 Store supplies used 975 475 1,450 Depreciation-Equipment 1,530 375 1,905 Total direct expenses 23,885 8,425 32,318 Allocated expenses Rent expense 7,020 3,780 18,888 Utilities expense 3,575 1,925 5,500 Share of office department expenses 10,500 4,500 15,000 Total allocated expenses 21,095 10,205 31,300 Total expenses 44,980 18,630 63,610 Net income $ 28,970 $ 5,120 $ 34,890 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $54.500 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,150: advertising, $875; store supplies, $575, and equipment depreciation, $275. It will fit the new department into the current rented space by taking some square footage from the other two departments. When opened the new Painting department will fill one-fifth of the space presently used by the Clock department and one-fourth used by the Mirror department Management does not predict any increase in utilities costs, which are allocated to the departments in proportion to occupied space for rent expense). The company allocates office department expenses to the operating departments in proportion to their sales. It expects the Painting department to Increase total office department expenses by $10,000. Since the Painting department will bring new customers into the store. management expects sales in both the clock and Mirror departments to increase by 8%. No changes for those departments' gross profit percents or their direct expenses are expected except for store supplies used, which will increase in proportion to sales. Required: Prepare departmental income statements that show the company's predicted results of operations for calendar-year 2020 for the three operating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Paintings Combined Sales Cost of goods sold Gross profit Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses