Suppose in its income statement for the year ended June 30, 2025, The Clorox Company reported the following condensed da

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Suppose in its income statement for the year ended June 30,
2025, The Clorox Company reported the
following condensed data (dollars in millions).
Salaries and wages expenses
Research and development expense
Depreciation expense
Income tax expense
Sales revenue
Loss on disposal of plant assets
Interest expense
Cost of goods sold
Advertising expense
Rent expense
Sales returns and allowances
Utilities expense
Assume a tax rate of 34%.
a) Prepare a multiple-step income statement
Ab)Calculate the gross profit rate and the profit margin
B)
Assume the marketing department has presented a plan to increase
advertising expenses by $210 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%.) (Assume a tax rate of 34%, and round all
amounts to whole dollars.)

Prepare a multiple-step income statement. Report Net Sales without
explicitly showing Sales Revenue and Sales Returns and Allowances
individually on the income statement
Bb)Calculate the gross profit rate and the profit margin