uppose in its income statement for the year ended June 30, 2014, The Clorox Company reported the following condensed data (dollars in millions).

Salaries and wages expenses $ 460 Research and development expense $ 101 Depreciation expense 70 Income tax expense 272 Sales revenue 5,790 Loss on disposal of plant assets 41 Interest expense 163 Cost of goods sold 3,275 Advertising expense 480 Rent expense 120 Sales returns and allowances 240 Utilities expense 40

Assume a tax rate of 34%. Assume the marketing department has presented a plan to increase advertising expenses by $245 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 25%. Prepare a multiple-step income statement.