WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2017 Mirror Combined $ 240,000 $115,000 355,000 117,60071,300 188,900 122,400 43,700 166,100 Clock Sales Cost of goods sold Gross profit Direct expenses Sales salaries Advertising tore supplies used Depreciation-Equipment Total direct expenses 21,000 1,600 ,150 1,700 25,450 8,100 300 300 400 9,100 29,100 1,900 1,450 2,100 34,550 Allocated expenses Rent expense Utilities expense Share of office department expenses Total allocated 10,760 4,700 22,000 37,460 72,010 $ 74,850 19,240 94,090 3,660 1,700 12,000 10,000 15,360 47,550 24,460 7,100 3,000 expenses 22,100 Total expenses Net income Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $47,000 in sales with a 85% gross profit margin and will require the following direct expenses: sales salaries, $8,500; advertising, $1,000; store supplies, $800; and equipment depreciation, $600. 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 (or 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 $8,200. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 10%. 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 2018 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, 2018 Clock Mirror Paintings Combined ales Cost of goods sold Gross profit Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses