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%. - Your answer is partially correct. Prepare a multiple-step income statement. (Round answers to decimal places, s. 15.222) The Clorox Company Income Statement P ye here to each TOSHIBA $

Answer 1

Multi-step Income Statement:
	Amount $'million
Sales :
Sales revenue	7162.5		(5730*1.25)
Less:Sales returns and allowances	350		(280*1.25)
Net Sales revenue	6812.5
Less:COGS	3880		(3104*1.25)
Gross Profit	2932.5
Less: Operating Expenses:
Salaries and Wages exp.	460
Depreciation exp.	90
Advertising exp.	839		499+340
Research and Development exp.	114
Rent expense	105
Utilities exp	60
Total Operating Expenses	1668
Income from Operations	1264.5
Other Expenses and Losses:
Interest expense	161
Loss on disposal of plant assets	46
Total Other expenses & Losses	207
Income before Income Tax	1057.5
Less: Income tax expense	359.55		1057.5*34%
Net Income	697.95
Gross Profit rate,% = GP/Net Sales	43.05		2932.5/6812.5
Profit Margin,% = NI/Net Sales	10.25		697.95/6812.5