The adjusted trial balance of Monty Wholesale Inc contained the following accounts at December 31, the company's year end: Credit Monty Wholesale INC. Adjusted Trial Balance December 31, 2021 Debit Cash $12,000 Accounts receivable 19,200 Prepaid insurance 2,200 Inventory 105,400 Supplies 6,300 Land 129,400 Buildings 219,500 Accumulated depreciation--buildings Equipment 96,300 Accumulated depreciation-equipment Accounts payable Deferred revenue Refund liability Income tax payable Bank loan payable Common shares Retained earning $93,600 32,100 59,800 9,700 4,750 3,700 97,600 48,000 FR1040 2 113,040 1,093,200 Retained earnings Sales Cost of goods sold Administrative expenses Selling expenses Interest expense Interest income Income tax expense 807,600 88,800 39,200 13,500 2,400 18,600 $1,558,000 $1,557,890 (a) Your answer is correct. Calculate the profit margin and gross profit margin (Round all amounts to 1 decimal place, s. 5.2%) 26.1 X Gross profit margin Profit margin 11.7 % Gross profit margin 26.1% Profit margin 117 %6 e Textbook and Media Attempts: 1 of 3 used Using multiple attempts will impact your score. 5% score reduction after attempt 1 (b) The vice-president of marketing and director of human resources have proposed that the company change its compensation of the sales force to a commission basis rather than paying a fixed salary. Given the extra incentive, they expect sales to increase by 15%. They estimate that gross profit will increase by $27,000, operating expenses by $13,500, and income tax expense by $2,700. Non-operating expense is not expected to change. Calculate the expected new gross proht and net income amounts. (Hint: You do not need to prepare a formal statement of income.) $ Expected new gross proht $ Expected net income amount