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 Retained Earnings Salaries and Wages Expense Sales Revenue Salaries and Wages Payable Sales Returns and Allowances Utilities Expense $ 31,624 20,296 80.240 9.440 41,300 724,874 7,316 185,260 15,930 14.160 2.360 11,800 10.620 5.900 30,916 51.330 7,080 39.530 40.120 16.756 138,060 1.066.720 7.080 23.600 12.508 PM WOLFORD DEPARTMENT STORE Income Statement For the Year Ended November 30, 2017 Net Income /(Loss) Sales Revenue 1066720 Less : Sales Returns and Allowances 23600 i Net Sales 1043120 Cost of Goods Sold 724874 i Gross Profit 318246 Operating Expenses 7316 i Freight-Out 15930 i Depreciation Expense 10620 i Insurance Expense 39530 i Advertising Expense Rent Expense 40120 Utilities Expense 12508 i Salaries and Wages Expense 138060 Total Operating Expenses 264084 i Total Operating Expenses 54162 Other Revenues and Gains Gain on Disposal of Plant Assets 2360 Other Expenses and Losses Interest Expense 5900 i Income Before Income Taxes 50622 Income Tax Expense 11800 Net Income / LOSS) 38822 Your answer is partially correct. Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement November 30, 2017 Retained Earnings, December 1, 2013 16756 Add : Net Income /(Loss) 38822 55578 Less : Dividends 14160 i Total Operating Expenses 41418 e Textbook and Media List of Accounts Prepare a classified balance sheet. (List current assets in order of liquidity) WOLFORD DEPARTMENT STORE Balance Sheet November 30, 2017 Assets Current Assets Cash 9440 Accounts Receivable 20296 Inventory 30916 Prepaid Insurance 7080 Total Current Assets 67732 Property. Plant and Equipment Equipment 185280 Less Accumulated Depreciation Equipment -80240 Total Assets plus.com Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 31624 Salaries and Wages Payable 7080 Total Current Liabilities 38704 Total long-term Liabilities Notes Payable 51330 Total Liabilities 90034 Stockholders' Equity Common Stock 41300 Retained Earnings 41419 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 2252 e Textbook and Media List of Accounts Your answer is correct. Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, es 15.2%) Profit margin Gross profit rate e 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 salesforce on a strictly commissions Glenthe increased incentives they sales to increase by 15%. As a result, they estimate that cross proht will increase by 547/23 and expenses by $69.148. compute the expected new income. Then compute the need prot e indross protrat Income taxeffects) Reventlncome Revised protmann (Round to 1 decimal places. 15.25 Revised on protte Round to 1 decimal places. 1525 Textbook and Media List of Accounts