Prepare financial statements and calculate profitability P5-4A Lambert Department Store several years, net income has been declining because sio attracting business away from city areas. At the end of the company's fiscal ve November 30, 2014, these accounts appeared in its adjusted trial balance. year on AS the (LO 4, 6), AP 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 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 Ca botor) 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 6,000 33,500 34,000 14,200 117,000 904,000 6,000 20,000 10,600 Salaris and Wages Epense Additional data: Notes payable are due in 2018. long ferm liab (a) Net income assets 32900 $146,400 Instructions (a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. (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 com- mission 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 7 gfv Hint . Totut op, expense Total 223,800