Question

Ch 05: Homework Send to Gradebook < Prev Question 3 View Policies Current Attempt in Progress 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 498 Sales revenue 6.230 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold Advertising expense 499 Rent expense Sales returns and allowances 230 Utilities expense Assume a tax rate of 34%

Answer 1

Answer:-

The multiple step income statement are as follows :-

THE CLOROX COMPANY Income statement For the year ended June 30,2022 (amount in millions)
Sales
Sales revenue	$6,230
Less :- Sales returns and allowance	$230
Net sales		$6,000
Cost of Goods sold		$3,000
Gross profit (Net sales - Cost of goods sold)		$3,000
Less: - Operating Expenses
Salaries and wages expenses	$460
Depreciation expense	$90
Advertising expense	$499
Research and development expense	$114
Rent expense	$105
Utilities expense	$60
Total Operating Expense		$1,328
Income from Operation ( Gross profit - Total operating expense)		$1,672
Less :- Other Expense and losses
Interest expense	$161
Loss on disposal of plants assets	$46
Total other expense and losses		$207
Income before taxes ( Income from Operation - Total other expense and losses)		$1,465
Less :- Income tax expenses		$498
Income after taxes (Income before taxes - Income tax expenses)		$967