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 396 Sales revenue 5,630 Loss on disposal of plant assets Interest expense 161 Cost of goods sold 2,700 Advertising expense 499 Rent expense Sales returns and allowances 230 Utilities expense Assume a tax rate of 34%.

Answer 1

$5,630 $230 $5,400 $2,700 $2,700 The Clorox Company Income Statement For the year Ended June 30, 2022 (amount in dollars) Sales Sales Revenue Less: Sales returns and allowances Net Sales Cost of goods sold Gross Profit Operating expenses: Advertising expense Salaries and wages expense Research and development expense Rent expense Depreciation expense Utilities expense Total operating expenses Income from operations Other expenses and losses Interest expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $499 $460 $114 $106 $90 $60 $1,329 $1,371 $161 $46 $207 $1,164 $396 $975 Gross Profit rate 50.00% Profit Margin 18.06% $7,319 $299 $7,020 $3,510 $3,510 The Clorox Company Income Statement For the year Ended June 30, 2022 (amount in dollars) Sales Sales Revenue Less: Sales returns and allowances Net Sales Cost of goods sold Gross Profit Operating expenses: Advertising expense Salaries and wages expense Research and development expense Rent expense Depreciation expense Utilities expense Total operating expenses Income from operations Other expenses and losses Interest expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $839 $460 $114 $106 $90 $60 $1,669 $1,841 $161 $46 $207 $1,634 $556 $1,285 Gross Profit rate 50.00% Profit Margin 18.31%