Exercise 5-9 (Part Level Submission) (a) Open Show Work Exercise 5-9 (Part Level
ID: 2575803 • Letter: E
Question
Exercise 5-9 (Part Level Submission)
(a)
Open Show Work
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 $ 110 Depreciation expense 85 Income tax expense 443 Sales revenue 5,735 Loss on disposal of plant assets 50 Interest expense 170 Cost of goods sold 2,758 Advertising expense 430 Rent expense 100 Sales returns and allowances 220 Utilities expense 50
Assume a tax rate of 34%.
Explanation / Answer
THE CLOROX COMPANY Income Statement For the Year Ended June 30, 2017 (amounts in millions) $ $ Sales revenue 5735 Sales return and allowances -220 Net Sales 5515 Cost of goods sold 2758 Gross margin 2757 Expenses: Research & Development expenses 110 Salaries & wages expense 460 Utilities expense 50 Advertising expenses 430 Interest expense 170 Depreciation expense 85 Loss on disposal of plant assets 50 Rent expenses 100 Total expenses 1455 Income before taxes 1302 Income tax expenses 443 Net Income 859