1.8 TI Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company's fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance Accounts Payable $35.912 Accounts Receivable 23.048 Accumulated Depreciation-Equipment Cash 91,120 10,720 46.900 Common Stock Cost of Goods Sold Freight-Out 823.162 8.308 Equipment 210,380 18.090 16.080 2.680 Depreciation Expense Dividends Gain on Disposal of Plant Assets Income Tax Expense Insurance Expanse Interest Expense Inventory 13,400 12.080 6.700 35. 108 Notes Payable 58.290 Prepaid insurance 8,040 Advertising Expert 44.890 Rent Expense 45.560 Retained Earning 19,028 to search o O Question 2 of 5 156,780 1.211.360 Salaries and Wages Expense Sales Revenue Salaries and Wages Payable Sales Returns and Allowances Utilities Expense 8,040 26,800 14.204 Additional data: Notes payable are due in 2021. Your Answer Correct Answer Your answer is correct. Prepare a multiple-step income statement. (List other revenues before other expenses) 0.8/1 III WOLFORD DEPARTMENT STORE Income Statement For the Year Ended November 30, 2017 Sales Sales Revenue Less : Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses Freight-Out 8.300 Depreciation Expense 18.090 Insurance Expense 12065 Advertising Expense 44890 Rent Exente 45.560 156710 Salaries and Wages Expense 14,204 Utilities Expanse Total Operating Expenses WOLFORD DEPARTMENT STORE Income Statement For the Year Ended November 30, 2017 1211,360 es Returns and Allowances 26.800 1:184360 822 162 361,398 ho 8.308 ande 18.090 12.060 44 990 45.560 1 Expense $56.70 1 29192 150 ons 1R070 i 12.000 44.890 i 45.560 es Expense 156.780 i 14 204 i pemes 299,072 utions Gains V of Plant Assets 2.680 d losses 6,700 Taxes 57466 13.400 4408 e Textbook and Media List of Accounts Your Answer Correct Answer Your answer is correct Prepare a retained earnings statement. (List Items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement For the Year Ended November 30, 2017 Retained Earnings, December 1, 2016 19.028 Add V: Net Income/(Loss) 44,086 63,114 Less V Dividends 16.080 $ 47034 Retained Earnings, November 30, 2017 e Textbook and Media List of Accounts Your Answer CA Question 2 of 5 0.8/ Assets Current Assets Cash 10.720 Accounts Receivable 23.048 Inventory 35.100 Prepaid Insurance 3.040 Total Current Assets v Property, plant and Equipment Equipment 210,380 LES VI: Accumulated Depreciation Equipment -91. 120 i Total Assets Liabilities and Stockholders' Equity Current abilities Accounts Payable 35912 0040 2100 And Depreciation -F1,120 119.750 1174 Liabilities and Stockholders' Equity be 35912 Wap Patte Lates 4,72 Site SEL Equity 46.900 nings 47,034 dans le 93.934 Stoholders' Equity 1961 Your Answer Correct Answer Your answer is correct. N Calculate the profit margin and the gross profit rate (Round answers to 1 decimal ploot eg 152X) Profit margin 3.7 % Gross profit rate 303 % e Textbook and Media Solution List of Accounts Your Answer Correct Answer x Your answer is incorrect Your Answer Correct Answer X Your answer is incorrect The vice president of marketing and the director of human resourdes have developed a proposal whereby the company would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 15% As a result, they estimate that gross profit will increase by $54,194 and expenses by $78,524. Compute the expected new net Income. Then compute the revised profit margin and gross profit rate (Ignore income tax effects) 212,122 Revised net income 211 %6 Revised profit margin (Round to 1 decimal place. es. 15.2%) 96 Revised gross proftrate (Round to 1 decimal place, es, 15.2%) eTextbook and Media Solution List of Accounts Attempts unlimited Submit Art