Question

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 276 Sales revenue 5,730 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 3,104 Advertising expense 499 Rent expense 105 Sales returns and allowances 280 Utilities expense Assume a tax rate of 34%. Prepare a multiple-step income statement. (Round answers to 0 decimal places, eg. 15.222.) The Clorox Company Income Statement (amounts in millions) Type here to search TOSHIBA

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

answer 5450 3104 2346 The Clorox Company Income Statement For the Year Ended June 30, 2022 Revenue Sales Revenue 5730 Less Sales return and allowances 280 net sales revenue Costof goods sold Gross Profit Operating expenses salaries and wages expense 460 Depreciation expense 90 Advertising expense 499 Research and development expense Rent expense Utilities expense 60 Total operating expense Operating income 114 105 1328 1018

0

21 Non operating expenses 22 Interest expense 23 Loss on Disposal of plant assets 24 25 Income Before tax 26 Income Tax expense 27 Net income after tax 811 276 535 28 29 Part 2) 30 Gross Profit rate 31 = gross margin / net sales *100 32 = 2346/5450*100 33 = 43.05% 34 35 Profit margin 36 = net profit after tax / sales*100 37 = 535/5450*100 38 = 9.82% 39