Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Wolford 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, 2017, 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 $ 38,056 24.424 96,560 11,360 49.700 872,306 8,804 222,940 19.170 17,040 2.840 14.200 12.780 7.100 37,204 61.770 8,520 47,570 48,280 Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement For the Year Ended November 30, 2017 Add : Net Income/(Loss) Less Dividends $ Retained Earnings. November 30, 2017 Prepare a classified balance sheet. (List current assets in order of liquidity.) WOLFORD DEPARTMENT STORE Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Calculate the prohtmargin and the gross profit rate (Round answers to 1 decimal place, es 15.26) Profit martin Gross proftrate Textbook 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 bush. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $57.429 and expenses by 583.212. Compute the expected new net income. Then, compute the revised prohtmargin and gross proftrategiere income taxeffects! 5 Revised net income Revised profit margin{Round to 1 decimal place, s. 15.2%) 3051 PM Revised gross profit rate (Round to I decimal places. 15.2M) O 11 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 96,560 11,360 49,700 872,306 8.804 222.940 19,170 17.040 2.840 14,200 12.780 7.100 37.204 61,770 8.520 47.570 48.280 20,164 166.140 1.283,680 8,520 28.400 15.052

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Software Audit Guide

Authors: John W. Helgeson

1st Edition

0873897730, 978-0873897730

More Books

Students also viewed these Accounting questions

Question

What is the most serious drawback of an ABC system?

Answered: 1 week ago