Send to Gradebook unting dates Question 2 View Policies Current Attempt in Progress ons Sup- Wildhorse 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 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 $ 68,000 44,300 176,800 20,800 91,000 1,585,620 16,860 413,320 36,100 31,200 5,200 26,000 23,400 13,000 67,700 113,100 15,600 87,100 88,400 36,500 308,500 2,350,000 15,600 52,000 26,300 Additional data: Notes payable are due in 2026. Prepare a multiple-step income statement. (List other revenues before other expenses.) WILDHORSE DEPARTMENT STORE Income Statement e Textbook and Media List of Accounts List of Accounts Prepare a retained earnings statement. (List items that increase retained earnings first.) WILDHORSE DEPARTMENT STORE Retained Earnings Statement eTextbook and Media Prepare a c a nce r rendasses in order of lo WILDHORSE DEPARTMENT STORE Liabilities and e Textbook and Media List of Accounts e Textbook and Media List of Accounts Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, cs. 15.2%) Profit margin Gross profit rate eTextbook 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 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 $106.857 and expenses by $145.923 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%) eTextbook and Media List of Accounts Attempts: 0 of 2 used Save for Later SA Send to Gradebook Previous