b

in 2022 a cause for concern? (ignore income tax effects.) E5.10 (LO 4, 6), AP Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). Prepare multiple step income statement and calculate profitability ratios. Research and development expense $ 114 Salaries and wages expense Depreciation expense Sales revenue Interest expense Advertising expense Sales returns and allowances $ 460 90 5.730 161 499 280 Income tax expense Loss on disposal of plant assets Cost of goods sold Rent expense Utilities expense 276 46 3,104 105 60 Instructions a. Prepare a multiple-step income statement. b. Calculate the gross profit rate and the profit margin and explain what each means, e. Assume the marketing department has presented a plan to increase advertising expenses by $340 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 25%. (Hint: Increase both sales revenue and sales returns and allowances by 25%.) Redo parts (a) and (b) and discuss whether this plan has merit. (Assume a tax rate of 34%, and round all amounts to whole dollars.) inn Inc renarted the following