Reference no: EM132755148
Question -
A. 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 328
Sales revenue 5,230
Loss on disposal of plant assets 46
Interest expense 161
Cost of goods sold 2,500
Advertising expense 499
Rent expense 105
Sales returns and allowances 230
Utilities expense 60
Assume a tax rate of 34%.
Required -
(a) Prepare multiple-step income statement.
(b) Calculate the gross profit rate and the profit margin.
B. Assume the marketing department has presented a plan to increase advertising expenses by $340 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 25%. (Hint: Increase both sales revenue and sales returns and allowances by 25%.) Redo parts (a) and (b) and discuss whether this plan has merit. (Assume a tax rate of 34%, and round all amounts to whole dollars.)
Required -
(a) Prepare multiple-step income statement.
(b) Calculate the gross profit rate and the profit margin.
|
Security views border and transportation security
: Describe and analyze how the CRS Report for Security views border and transportation security.
|
|
What would be the dividend yield
: If this dividend were raised by $3.64, given its current stock price of 42.95. What would be the Dividend Yield
|
|
Determine the total activity cost and activity cost per unit
: Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product
|
|
How much money would she have in that account today
: Suppose that she had deposited this money into an investment account earning 5.4% interest, compounded quarterly. How much money would she have in that account
|
|
Calculate the gross profit rate and the profit margin
: Assume the marketing department has presented a plan to increase advertising expenses by $340 million. Calculate the gross profit rate and the profit margin
|
|
What was your real return
: Suppose you own an asset that had a total return last year of 10.7 percent. If the inflation rate last year was 4.9 percent, what was your real return
|
|
How much adjusted capital balances of a and b respectively
: How much are the adjusted capital balances of A and B, respectively? The accounts receivable has a recoverable amount of ?120,000.
|
|
Which partner has the smallest april capital account
: Losses are to be shared equally but is silent regarding capital contributions. Which partner has the smallest April 30, 20x1 capital account balance?
|
|
Calculate waae and avoidable interest
: Calculate WAAE, avoidable interest, actual interest, and interest to be capitalized? On March 1, 2020, AUS Company purchased land for an office site.
|