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Question - 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
1,110
Sales revenue
9,830
Loss on disposal of plant assets
46
Interest expense
161
Cost of goods sold
4,800
Advertising expense
499
Rent expense
105
Sales returns and allowances
230
Utilities expense
60
Assume a tax rate of 34%.
Required - Calculate the gross profit rate and the profit margin.
Financial Statement Analysis and Preparation
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