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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 business away from city areas. At the end of the company's fiscal year on November 30, 2017, these accounts appeared in it 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 $ 31,088 19,952 78,880 9,280 40,600 712,588 7,192 182.120 15,660 13,920 2,320 11.600 10,440 5,800 30,392 50,460 6,960 38,860 39,440 16,472 135,720 1,048,640 6.960 23.200 12.296 WOLFORD DEPARTMENT STORE Income Statement For the Year Ended November 30, 2017 Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement WOLFORD DEPARTMENT STORE Balance Sheet Assets Liabilities and Stockholders' Equity Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, s. 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 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 $46,914 and expenses by $67,976. Compute the expected new net income. Then, compute the revised profit margin and gross profit rate. Oignore income tax effects) Revised net income Revised profit margin (Round to 1 decimal place.es. 15.2%) Revised gross profit rate (Round to 1 decimal place, s. 15.2%) eTextbook and Media List of Accounts

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