Please see below. I need help with the revised net income and the revised profit margin, as my answers came back as incorrect. Note that the answers are not Revised net income = $25,472 Revised profit margin % = 2.24% either.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 $ 30,016Accounts Receivable 19,264Accumulated Depreciation—Equipment 76,160Cash 8,960Common Stock 39,200Cost of Goods Sold 688,016Freight-Out 6,944Equipment 175,840Depreciation Expense 15,120Dividends 13,440Gain on Disposal of Plant Assets 2,240Income Tax Expense 11,200Insurance Expense 10,080Interest Expense 5,600Inventory 29,344Notes Payable 48,720Prepaid Insurance 6,720Advertising Expense 37,520Rent Expense 38,080Retained Earnings 15,904Salaries and Wages Expense 131,040Sales Revenue 1,012,480Salaries and Wages Payable 6,720Sales Returns and Allowances 22,400Utilities Expense 11,872 Your answer is partially correct.The vice president of marketing and the director of human resources have developed a proposal whereby the company wouldcompensate 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 $45,296 and expenses by $65,632. Compute the expected new netincome. Then, compute the revised profit margin and gross profit rate. (Ignore income tax effects.)Revised net income14,272Revised profit margin (Round to 1 decimal place, e.g. 15.2%)1.230.51Revised gross profit rate (Round to 1 decimal place, e.g. 15.2%)%24

Income statement is prepared by the business organizations so as to determine how much amount of…

Answered: Wolford Department Store is located in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please see below. I need help with the revised net income and the revised profit margin, as my answers came back as incorrect. Note that the answers are not Revised net income = $25,472 Revised profit margin % = 2.24% either.

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		$ 30,016
Accounts Receivable		19,264
Accumulated Depreciation—Equipment		76,160
Cash		8,960
Common Stock		39,200
Cost of Goods Sold		688,016
Freight-Out		6,944
Equipment		175,840
Depreciation Expense		15,120
Dividends		13,440
Gain on Disposal of Plant Assets		2,240
Income Tax Expense		11,200
Insurance Expense		10,080
Interest Expense		5,600
Inventory		29,344
Notes Payable		48,720
Prepaid Insurance		6,720
Advertising Expense		37,520
Rent Expense		38,080
Retained Earnings		15,904
Salaries and Wages Expense		131,040
Sales Revenue		1,012,480
Salaries and Wages Payable		6,720
Sales Returns and Allowances		22,400
Utilities Expense		11,872

Your answer is partially correct.
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 $45,296 and expenses by $65,632. Compute the expected new net
income. Then, compute the revised profit margin and gross profit rate. (Ignore income tax effects.)
Revised net income
14,272
Revised profit margin (Round to 1 decimal place, e.g. 15.2%)
1.2
30.51
Revised gross profit rate (Round to 1 decimal place, e.g. 15.2%)
%24

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