P5-4B Parker Department Store is located near the Mark Twain Shopping Mall. At the end of the company's fiscal year on December 31,2014, the following accounts appeared in its a Prepare financial statements and calculate profitability ratios. (10.0 4, B), AP Additional data: $20,000 of the mortgage payable is due tor payment next year. Instructions (a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. (a) Net income $28300 Tot assets $313,800 (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 sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 25%. As a result, they estimate that gross profit will increase by $50,500 and expenses by $27,800. 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 the ratios, and evaluate the merit of this proposal