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		600
Sales revenue		6,830		Loss on disposal of plant assets		46
Interest expense		161		Cost of goods sold		3,300
Advertising expense		499		Rent expense		105
Sales returns and allowances		230		Utilities expense		60

Assume a tax rate of 34%.

A. (Answer Correct)

Here's where I need some help:

C1. 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 20%. (Hint: Increase both sales revenue and sales returns and allowances by 20%.) 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.) Prepare a multiple-step income statement. (Round answers to 0 decimal places, e.g. 15,222.)

And then....

Sales Sales Revenue 6830 Less Sales Returns and Allowances 230 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Salaries and Wages Expense 460 i Depreciation Expense 90 i 499 Advertising Expense Research and Development Expense 114 Rent Expense 105 i Utilities Expense 60 Total Operating Expenses Income From Operations Other Expenses and Losses Interest Expense Loss on Disposal of Plant Assets 161 i 46 i Income Before Income Taxes Income Tax Expense Net Income /(Loss) wenue $ 6830 Sales Returns and Allowances 230 6600 ods Sold 3300 i fit 3300 Expenses and Wages Expense 460 i ation Expense 90 ing Expense 499 and Development Expense 114 sense 105 Expense 60 erating Expenses 1328 om Operations 1972 enses and Losses Expense 161 Disposal of Plant Assets 46 207 i efore Income Taxes 1765