Question

Exercise 5-9 (Part Level Submission) Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (dollars in millions $ 120 439 Salaries and wages expenses Depreciation expense Sales revenue Interest expense Advertising expense Sales returns and allowances $ 410 Research and development expense 75 Income tax expense 5,775 Loss on disposal of plant assets 170 Cost of goods sold 470 Rent expense 230 Utilities expense 2,773 120 Assume a tax rate of 34%. (a) Prepare a multiple-step Income statement. (Round answers to o decimal places, e.g. 15,222.) THE CLOROX COMPANY co search 11111 .

Answer 1

Multiple step income statement is given below:

Description	Amount	Amount
Sales revenue	5775
Less: Sales returns and allowances	(230)
Net sales		5545
Less: Cost of goods sold		(2773)
Gross Margin		2772
Less: General & administration expenses:
Salaries & wages expense	410
Depreciation expense	75
Research & development expense	120
Rent expense	120
Utilities expense	70
Total general & administration expense		(795)
Less: Selling expenses:
Advertising expense		(470)
Income from operations		1507
Other revenues & gains:
Loss on disposal of plant assets		(45)
Other expenses & losses:
Interest expense		(170)
Income before income tax		1292
Less: Income tax		(439)
Net income		853