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		430
Sales revenue		5,830		Loss on disposal of plant assets		46
Interest expense		161		Cost of goods sold		2,800
Advertising expense		499		Rent expense		105
Sales returns and allowances		230		Utilities expense		60

(a)

Prepare a multiple-step income statement.

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c1)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c2)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

The Multi-step income statement is shown below:

$460 $499 А Bc Multi-step income statement Particulars Amount Amout 3 Sales Revenue $5,830 4 Less: Sales return and allowances $2301 5 Net Sales $5,600 6 Less: COGS $2,800 7 Gross Profit $2,800 8 Less: Operating expenses 9 Salaries and wages expense 10 Depreciation expense 11 Advertisement expense 12 Research and development expense 13 Rent expense 14 Utility expense 15 Total operating expenses $1,328 16 Total operating income $1,472 17 Less: Other expenses 18 Loss on disposal of plant assets $46 19 Interest expense $161 20 Total other expenses $207 21 Earning before tax $1,265 22 Less: Income tax expense $430 23 Net income 5835 $114

The following excel formulas are used:

A 2 Amout =B3-B4 =C5-B6 Multi-step income statement Particulars Amount 3 Sales Revenue 5830 4 Less: Sales return and allowances 230 5 Net Sales 6 Less: COGS 2800 7 Gross Profit 8 Less: Operating expenses 9 Salaries and wages expense 10 Depreciation expense 11 Advertisement expense 12 Research and development expense 13 Rent expense 14 Utility expense 15 Total operating expenses 16 Total operating income 17 Less: Other expenses 18 Loss on disposal of plant assets 19 Interest expense 161 20 Total other expenses 21 Earning before tax 22 Less: Income tax expense 23 Net income =SUM(B9:B14) =C7-C15 =SUM(B18:B19) =C16-C20 430 =C21-B22

Note:

The answer of part (a) is provided above and the other parts of the question are not provided in the question. Please make available the other parts (b) (c1) and (c2) also, so that I can provide the solution.