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Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions)

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Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions).

 

Salaries and wages expenses$ 460

Research and development expense$ 114Depreciation expense

90Income tax expense328Sales revenue

5,230Loss on disposal of plant assets46Interest expense

161Cost of goods sold2,500Advertising expense499Rent expense

105Sales returns and allowances230Utilities expense

60

 

Assume a tax rate of 34%.

(a)

Prepare multiple-step income statement. (Round answers to 0 decimal places, e.g. 15,222.)

 

 

 

Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, e.g. 15.2%.)

 

Gross profit rate

enter percentages rounded to 1 decimal place

%Profit margin

enter percentages rounded to 1 decimal place

 

 

Assume the marketing department has presented a plan to increase advertising expenses by $340 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 25%. (Hint: Increase both sales revenue and sales returns and allowances by 25%.) Redo parts (a) and (b) and discuss whether this plan has merit. (Assume a tax rate of 34%, and round all amounts to whole dollars.)

 

Prepare multiple-step income statement. (Round answers to 0 decimal places, e.g. 15,222.)

 

The Clorox Company

Income Statement

choose the accounting period

                                                                       

For the Year Ended June 30, 2022

For the Month Ended June 30, 2022

June 30, 2022

 

(amounts in millions)

 

 

 

Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, e.g. 15.2%.)

 

Gross profit rate

enter percentages rounded to 1 decimal place

%Profit margin

enter percentages rounded to 1 decimal place

%