Question

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

Answer 1

Income Statement
Revenues
Sales Revenue	$        1,066,720
Less : Sales Returns and allowances	$            (23,600)
Net Sales Revenue		$     1,043,120
Cost of Goods Sold		$         724,874
Gross Profit		$         318,246
Operating Expenses
Freight out	$                7,316
Depreciation - Expense	$              15,930
Insurance Expense	$              10,620
Advertising Expense	$              39,530
Rent Expense	$              40,120
Utilities Expense	$              12,508
Salaries and Wages Expense	$            138,060
Total Operating Expenses		$         264,084
Operating Income		$           54,162
Other Income / (Expenses)
Gain on Disposal of plants		$             2,360
Interest Expense		$           (5,900)
Income before tax		$           50,622
Income tax expense		$           11,800
Net Income		$           38,822

Statement of Retained Earnings
Beginning Balance	$              16,756
Add : Net Income	$              38,822
	$              55,578
Less : Dividend	$              14,160
Ending Balance	$              41,418

Balance Sheet
Assets
Current Assets
Cash	$                9,440
Accounts Receivable	$              20,296
Inventory	$              30,916
Prepaid Insurance	$                7,080
Total Current Assets		$           67,732
Non-Current assets
Property, Plant and Equipment
Equipment	$            185,260
Less Accumulated Depreciation-Equipment	$            -80,240	$         105,020
Total Assets		$         172,752
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$              31,624
Salaries and Wages Payable	$                7,080
Total Current Liabilities		$           38,704
Non Current Liabilities
Notes Payable		$           51,330
Total Liabilities		$           90,034
Stockholder's Equity
Common Stock	$              41,300
Retained Earnings	$              41,418
Total Stockholder's Equity		$           82,718
Total Liabilities & Stockholder's Equity		$         172,752

Profit Margin = Net Income / Net Sales x100
= $38822/1043120 = 3.7%

Gross Profit Margin = Gross Profit / Net Sales x 100
= $318246/1043120 = 30.5%

Last part cannot be answered as image is cropped and not readable. Moreover we have to do 4 parts, i have done 4