2 $ Question 1 --/1 View Policies Current Attempt in Progress 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 Accounts Receivable Accumulated Depreciation Equipment Cash Common Stock Cost of Goods Sold Freight-Out Equipment Depreciation Expense Dividends Gain on Disposal of Plant Assets Income Tax Expense Insurance Expense Interest Expense Inventory Notes Payable Prepaid Insurance Advertising Expense Rent Expense Retained Earnings Salaries and Wages Expense Sales Revenue Salaries and Wages Payable Sales Returns and Allowances Utilities Expense $ 40,200 25,800 102,000 12,000 52,500 921,450 9,300 235,500 20,250 18,000 3,000 15,000 13,500 7,500 39,300 65,250 9,000 50,250 51.000 21,300 175,500 1,356,000 9,000 30,000 15,900 Additional data: Notes payable are due in 2021. Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement $ : $ e Textbook and Media List of Accounts Assets $ 2 S Liabilities and Stockholders' Equity + A . $ Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%) Profit margin % Gross profit rate % e Textbook and Media List of Accounts The vice president of marketing and the director of human resources have developed a proposal whereby the company would compensate th sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate t gross profit will increase by $60,665 and expenses by $87,900. Compute the expected new net income. Then, compute the revised profit mar and gross profit rate. (Ignore income tax effects.) Revised net income $ Revised profit margin (Round to 1 decimal place, e.g. 15.2%) % Revised gross profit rate (Round to 1 decimal place, e.g. 15.2%) % e Textbook and Media List of Accounts