Question

Exercise 5-10 (Part Level Submission) Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). 450 Resend e t pense Salaries and wages expenses Depreciation expense Sales revenue otes 10,030 n 161 Cost of Advertising expense Sales returns and allowances 230 Assume a tax rate of 34%. (a) Your answer is correct. Prepare a multiple-step income statement. (Round answers to o decimal places, e.g. 15,222.) The Clare Company Income Statement Free (amounts in millions) Sales Returns and Allowances et Sales Cost of Goods Sole rest Operating Advertising Expense Total Operating en Income From Operations Other perses and L es Income before income et Income (Los)

Answer 1

	Income Statement
	Sales
	Sales Revenue				$ 12,537.50
Less:	Sales Returns and Allowance				$      287.50
	Net Sales					$ 12,250.00
	Cost of Goods sold					$   6,125.00
	Gross Profit					$   6,125.00
	Operating Expenses:
	Salaries and Wages Expense				$      460.00
	Depreciation Expense				$        90.00
	Utilities Expense				$        60.00
	Research and Development Expense				$      114.00
	Rent Expense				$      105.00
	Advertising Expense				$      839.00
	Total Operating Expense					$   1,668.00
	Income from Operations					$   4,457.00
	Other expenses and Losses:
	Interest Expense				$      161.00
	Loss on disposal of plant asset				$        46.00
						$      207.00
	Income before income tax					$   4,250.00
	Income tax expense					$   1,445.00
	Net Income / (Loss)					$   2,805.00