Exercise 5-9 (Part Level Submission) Suppose in its income statement for the yea

Question

Exercise 5-9 (Part Level Submission) Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expenses 480 Research and development expense $115 Depreciation exper Sales r Interest expense Advertising expense Sales returns and allowances 235 Utilities expense 80 5,685 160 530 Income tax expense Loss on disposal of plant assets Cost of goods sold Rent expense 216 45 3,270 40 Assume a tax rate of 34%. (a) Prepare a multiple-step income statement. (Round answers to 0 decimal THE CLOROX COMPANY amounts in millions ^dv 1:57 PM DELL

Explanation / Answer

Income Statement :-

Particulars Amount($) Amount($) Revenues :- Sales Revenue 5685 Less : Sales Returns and Allowances (235) Net Sales 5450 5450 Less : Cost of Goods sold (3270) Greoss Profit 2180 Less : Operating Expenses Salaries and wages Exp. 480 Depreciaton Exp. 80 Advertising Exp. 530 Research and Development Exp. 115 Rent Expense 95 Utilities Exp. 40 Total Operating Income 1340 (1340) Income from operation 840 Non-Operating income and Expenses Interest Income 160 Loss on disposal of assets 45 Total Non-operating income and expense 205 205 Income Before tax $1045 Less : Income Tax ($355.3) Net income $689.7

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