Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (dollars in millions) Salaries and wages expenses 430 Research and development expense Depreciation expense Sales revenue Interest expense Advertising expense Sales returns and allowances 205 Utilities expense $120 406 40 2,675 110 60 75 5,555 160 Income tax expense Loss on disposal of plant assets Cost of goods sold 485 Rent expense Assume a tax rate of 34%. Prepare a multiple-step income statement. (Round answers to O decimal places, e.g. 15,222.) THE CLOROX COMPANY Income Statement For the Year Ended June 30, 2017 (amounts in millions) Net Sales Sales Revenue 5,555 LessSales Returns and Allowances 205 Net Sales 5,350 Cost of Goods Sold 2,675 Gross Profit 2,675 Operating Expenses Salaries and Wages Expense 430 Depreciation Expense 75 Advertising Expense 485 Research and Development Expense 120 Rent Expense 110 Utilities Expense 60 Total Operating Expenses 1,280 Income From Operations 1,395 Other Expenses and Losses Interest Expense 160 Loss on Disposal of Plant Assets 40 200 Other Expenses and Losses 200 ncome Tax Expense 406 Net Income/(Loss) 789 List of Accounts Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, eg. 15.2%) Gross profnt rate 14.7 % Profit margin 50 % List of Accounts Assume the marketing department has presented a plan to increase advertising expenses by $390 million. It expects this plan to result in an increa in both net sales and cost of goods sold of 25%. Prepare a multiple-step income statement. (Round answers to O decimal places, e.g. 15,222.) THE CLOROX COMPANY Income Statement For the Year Ended June 30, 2017 (amounts in millions) Sales Revenues Net Sales 5,350 Cost of Goods Sold 2,675 Gross Profit 2,675 Operating Expenses Salaries and Wages Expense Research and Development Expense Salaries and Wages Expense Research and Development Expense Advertising Expense Rent Expense Utilities Expense Depreciation Expense Total Operating Expenses Income From Operations Other Expenses and Losses Interest Expense Loss on Disposal of Plant Assets ncome Before Income Taxes ncome Tax Expense Income Before Income Taxes ncome Tax Expense Net Income/(Loss) List of Accounts Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, eg. 15.296) Gross profit rate Profit margin List of Accounts Attempts: 0 of 5 used Check