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

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 $ 114

Depreciation expense 90 Income tax expense 362

Sales revenue 5,430 Loss on disposal of plant assets 46

Interest expense 161 Cost of goods sold 2,600

Advertising expense 499 Rent expense 105

Sales returns and allowances 230 Utilities expense 60

Assume a tax rate of 34%.

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

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

Gross profit rate %

Profit margin %

(c1) 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 30%. (Hint: Increase both sales revenue and sales returns and allowances by 30%.) 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.)

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

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

Gross profit rate %

Profit margin %