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 S114 Depreciation opense 90 income tax expense Sales revenue 6.230 LOSS on disposal of plant assets Interest expense 161 Cost of goods sold Advertising expense 499 Rent expense Sa returns and a lowances 230 Utes expense sume tax rate of 3

Answer 1

The Clorox Company
Income Statement
For the Year Ended June 30,2022
( Amounts in Millions )
Sales :
Sales Revenue	$ 6,230
Less: Sales Return and allowances	($ 230)
Net sales		$ 6,000
less: cost of goods sold		($ 3,000)
Gross profit		$ 3,000
less: Operating Expenses:
Salaries and wages expense	$ 460
Depreciation expense	$ 90
Advertising Expense	$ 499
Research and Development Expense	$ 114
Rent Expense	$ 105
Utilities Expense	$ 60
Total operating Expenses		($1,328)
Income from operations
Less: Other expenses and losses :
Loss on Disposal of plant assets	$ 46
Interest expense	$ 161
		($207)
Income before income taxes		$ 1,465
Less: Income tax Expense($1,465 * 34 %)		($ 498 )
Net income / (Loss)		$ 967

Required C 1 :

The Clorox Company
Income Statement
For the Year Ended June 30,2022
( Amounts in Millions )
Sales :
Sales Revenue ($6,230*125%)	$ 7,788
Less: Sales Return and allowances($230*125%)	($ 288)
Net sales		$ 7,500
less: cost of goods sold ($3,000*125%)		($ 3,750)
Gross profit		$ 3,750
less: Operating Expenses:
Salaries and wages expense	$ 460
Depreciation expense	$ 90
Advertising Expense($ 499+ $ 340 )	$ 839
Research and Development Expense	$ 114
Rent Expense	$ 105
Utilities Expense	$ 60
Total operating Expenses		($1,668)
Income from operations
Less: Other expenses and losses :
Loss on Disposal of plant assets	$ 46
Interest expense	$ 161
		($207)
Income before income taxes		$ 1,875
Less: Income tax Expense($1,875 * 34 %)		($ 638 )
Net income / (Loss)		$ 1,237