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Problem 5-04 Cullumber Department Store is located in midtown Metropolis. During the past several years, net income has been decliving because suburban shopping centers have been attracting business way from city areas. At the end of the company's fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance Accounts Payable $ 18,600 Accounts Receivable 12,000 Accumulated Depreciation Equipment 47,600 Cash 5,600 Common Stock 24,500 Cost of Goods Sold 427,000 Freight-out 4,790 Equipment 111,550 Depreciation Expense 9,500 Dividends 8,400 Ganon usposal of Plant Assets 1.400 Income Tax Expense 7,000 Insurance Expense 6,300 Interest 3,500 Inventory 18,300 Notes Payable 30.450 Prepeld Insurance 4,200 Advertising Expense 23,450 Rent Expense 23.000 Betained Earnings 9,000 Salaries and Wages Expense 33,160 Sales Revenge 633,000 Salaries and Wages Payable 4,200 Sales Returns and Allowances 13,000 Us Expense 7.300 CULLUMBER DEPARTMENT STORE Income Statement V Prepare a retained earnings statement. (List items that increase retained earnings first.) CULLUMBER DEPARTMENT STORE Retained Earnings Statement V CULLUMBER DEPARTMENT STORE Balance Sheet Assets dy V Liabilities and Stockholders' Equity $ Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, .. 15.2%) Profit margin Gross profit rate SHOW LINY OF ACCOUNTS LINETOTEKE 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 at sales to increase by 15 Ma result, the time that grows proht will increase by 128,130 and expenses by 599,370 Compute the expected new net income. (Hint: You do not need to prepare come statement. Then, compute the revised profit margin and grow profit ute. Comment on the effect that is an would have on net income and on the ratios, and evaluate the merit of this proposal (lonore income tax effects) Revised me income evine prontmargin (Round to 1 decimal place og 18.24) Revised gross proftrate (Round to 1 decimal place, c.9. 15.29) Click if you would like to show Work for this question One Sew Work

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