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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
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 companys fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance.
Accounts Payable | $ 27,336 | |
Accounts Receivable | 17,544 | |
Accumulated DepreciationEquipment | 69,360 | |
Cash | 8,160 | |
Common Stock | 35,700 | |
Cost of Goods Sold | 626,586 | |
Freight-Out | 6,324 | |
Equipment | 160,140 | |
Depreciation Expense | 13,770 | |
Dividends | 12,240 | |
Gain on Disposal of Plant Assets | 2,040 | |
Income Tax Expense | 10,200 | |
Insurance Expense | 9,180 | |
Interest Expense | 5,100 | |
Inventory | 26,724 | |
Notes Payable | 44,370 | |
Prepaid Insurance | 6,120 | |
Advertising Expense | 34,170 | |
Rent Expense | 34,680 | |
Retained Earnings | 14,484 | |
Salaries and Wages Expense | 119,340 | |
Sales Revenue | 922,080 | |
Salaries and Wages Payable | 6,120 | |
Sales Returns and Allowances | 20,400 | |
Utilities Expense | 10,812 |
Additional data: Notes payable are due in 2021.
1st - Prepare a multiple-step income statement.
2nd Retained earnings
3rd - classified balance
4th - profit and gross %
Income Statement For the Year Ended November 30, 2017 Sales Revenue $ Less v: Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses Freight-Out $ Depreciation Expense Insurance Expense Depreciation Expense Insurance Expense Advertising Expense Rent Expense Salaries and Wages Expense Utilities Expense Total Operating Expenses Income From Operations Other Revenues and Gains Gain on Disposal of Plant Assets Other Expenses and Losses Interest Expense Other Expenses and Losses Interest Expense Income Before Income Taxes Income Tax Expense Net Income /(Loss) $ > Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement $ . : $ Liabilities and Stockholders' Equity $ $ A A > > > > > > Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%) Profit margin % Gross profit rate %
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