Exercise 5-9 (Part Level Submission) Suppose in its income statement for the yea
ID: 2342224 • Letter: E
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 460 Research and development expense 114 Depreciation expense Sales revenue Interest expense Advertising expense Sales returns and allowances 90 5,730 161 499 280 Income tax expense Loss on disposal of plant assets Cost of goods sold Rent expense Utilities expense 276 46 3,104 105 60 Assume a tax rate of 34%.Explanation / Answer
THE CLOROX CORPORATION Income Statement For the Year Ended June 30,2017 (amounts in millions) Sales Net Sales 6,813 Cost of goods sold 3,880 Gross Profit 2,933 Operating Expenses Salaries and wages Expense 460 Depreciation Expense 90 Advertising Expense 839 Research and Development Expenses 114 Rent Expense 105 Utilities Expense 60 Total Operating Expenses 1,668 Income from operations 1,265 Other Expenses anf losses : Interest Expense 161 Loss on Disposal of Plant Assets 46 207 Income Before Income Taxes 1,058 Income Tax Expense 360 Net Income /( Loss) 698