Carla Vista 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, 2022, these accounts appeared in its adjusted trial balance. Accounts Payable $ 62.800 Accounts Receivable 40.900 Accumulated Depreciation Equipment 163,200 Cash 19.200 Common Stock 84,000 Cost of Goods Sold 1,462,800 Freight-Out 15.220 Equipment 381,500 Depreciation Expense 33,300 Dividends 28,800 Gain on Disposal of Plant Assets 4.800 Income Tax Expense 24,000 Insurance Expense 21,600 Interest Expense 12.000 Inventory 62.500 Notes Payable 104,400 Prepaid Insurance 14,400 Advertising Expense 80,400 Rent Expense 81,600 Retained Earnings 33,700 Salaries and Wages Expense 284,780 Sales Revenue 2,168,000 Salaries and Wages Payable 14.400 Sales Returns and Allowances 48.000 Utilities Expense 24.300 Additional data: Notes payable are due in 2026. (a 1) Prepare a multiple-step income statement. (List other revenues before other expenses.) CARLA VISTA DEPARTMENT STORE Income Statement $ $ Prepare a retained earnings statement. (List items that increase retained earnings first.) CARLA VISTA DEPARTMENT STORE Retained Earnings Statement $ $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit Answer (a3) Prepare a classified balance sheet. (List current assets in order of liquidity.) CARLA VISTA DEPARTMENT STORE Balance Sheet Assets $ $ Liabilities and Stockholders' Equity e Textbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit Answer (b) 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 The vice president of marketing and the director of human resources 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 $98,580 and expenses by $134.620. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Comment on the effect that this plan would have on net income and on the ratios, and evaluate the merit of this proposal. (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%) %