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Lambert 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, 2014, these accounts appeared in its adjusted trial balance.

Lambert 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, 2014, these accounts appeared in its adjusted trial balance. Accounts Payable Accounts Receivable Accumulated DepreciationEquipment 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 $ 34,840 22,360 88,400 10,400 45,500 798,590 8,060 204,100 17,550 15,600 2,600 13,000 11,700 6,500 34,060 56,550 7,800 43,550 44,200 18,460 152,100 1,175,200 7,800 26,000 13,780 Additional data: Notes payable are due in 2018. Prepare a multiple-step income statement. (List other revenues before other expenses.) Prepare a retained earnings statement. (List items that increase retained earnings first.) Prepare a classified balance sheet. (List current assets in order of liquidity.) LAMBERT DEPARTMENT STORE Balance Sheet November 30, 2014 Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%) Profit margin % Gross profit rate % 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 $52,576 and expenses by $76,180. Compute the expected new net income. Then, compute the revised profit margin and gross profit rate. (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%) % :k