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.) Prepare a multiple-step income statement. (Round answers to decimal places, eg. 15,222.) The Clorox Company Income Statement (amounts in millions) Sales $ ||| 9 Pharoah Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, 1/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,490 (including freight) from Catlin Publishers, terms 2/10./30. 3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900. 6 Received $90 credit for books returned to Catlin Publishers. Paid Catlin Publishers in full. Received payment in full from Garfunkel Bookstore. Sold books on account to Bell Tower for $1,400, terms of 2/10./30. The cost of the merchandise sold was $800. 20 Purchased books on account for $800 from Priceless Book Publishers, terms 2/15.1/30. Received payment in full, less discount from Bell Tower. Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2.650. The cost of the merchandise sold was $850. Granted General Bookstore $260 credit for books returned costing $90. 15 17 24 26 30 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.) Prepare a multiple-step income statement. (Round answers to O decimal places, e.g. 15,222.) 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.) Prepare a multiple-step income statement. (Round answers to decimal places, eg. 15,222.) The Clorox Company Income Statement (amounts in millions) Sales $ ||| 9 Pharoah Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, 1/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,490 (including freight) from Catlin Publishers, terms 2/10./30. 3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900. 6 Received $90 credit for books returned to Catlin Publishers. Paid Catlin Publishers in full. Received payment in full from Garfunkel Bookstore. Sold books on account to Bell Tower for $1,400, terms of 2/10./30. The cost of the merchandise sold was $800. 20 Purchased books on account for $800 from Priceless Book Publishers, terms 2/15.1/30. Received payment in full, less discount from Bell Tower. Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2.650. The cost of the merchandise sold was $850. Granted General Bookstore $260 credit for books returned costing $90. 15 17 24 26 30 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.) Prepare a multiple-step income statement. (Round answers to O decimal places, e.g. 15,222.)
