need help with parts B ans C! (no Finacial statements needed )

Ps.4A (LO 4.6), AP a 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, 2022, these accounts appeared in its adjusted trial balance. Prepare financial statements and calculate profitability ratios. 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 Asset Income Tax Expense Insurance Expense Interest Expense Inventory Notes Payable Prepaid Insurance Advertising Expense Rent Expense Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Returns and Allowances Sales Revenue Utilities Expense $ 26,800 17,200 68,000 8,000 35,000 614.300 6,200 157,000 13.500 12,000 2,000 10,000 9,000 5,000 26,200 43.500 6,000 33.500 34,000 14,200 117,000 6,000 20.000 904,000 10.600 Net income $ 32,900 Tot assets $146.400 b. Calculate the profit margin and the gross profit rate c. The vice president of marketing and the director of human resources have developed a proposal whereby the company would compensate the salesforce 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 $40.443 and expenses by $58,600. 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 lgnore income tax effects.)