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 $ 34,840 Accounts Receivable 22,360 Accumulated Depreciation Equipment 88,400 Cash 10,400 Common Stock 45,500 Cost of Goods Sold 798,590 Freight-Out 8,060 Equipment 204,100 Depreciation Expense 17,550 Dividends 15,600 Gain on Disposal of Plant Assets 2,600 Income Tax Expense 13,000 Insurance Expense 11,700 Interest Expense 6,500 Inventory 34,060 Notes Payable 56,550 Prepaid Insurance 7,800 Advertising Expense 43,550 Rent Expense 44,200 Retained Earnings 18,460 Salaries and Wages Expense 152,100 Sales Revenue 1.175,200 Salaries and Wages Payable 7,800 Sales Returns and Allowances 26,000 Utilities Expense 13,780 WOLFORD DEPARTMENT STORE Income Statement Total Revenues Sales Revenue $ Less V: Sales Returns and Allowances Net Sales ANONI Cost of Goods Sold Gross Profit Operating Expenses Freight-Out $ Depreciation Expense Insurance Expense Advertising Expense Rent Expense DICE Salaries and Wages Expense Utilities Expense Total Operating Expenses Income From Operations Other Revenues and Gains Interest Expense IN DIN Income Before Income Taxes Income Tax Expense Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement $ $ Prepare a classified balance sheet. (List current assets in order of liquidity.) WOLFORD DEPARTMENT STORE Balance Sheet Assets DITT w $ 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%) %