E6.11 (LO 3, 4), AP 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 expense $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 162 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 60 Instructions

a. Prepare a multiple-step income statement. b. Calculate the gross profit rate and the profit margin and explain what each means.