Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). 

Instructions 

a. Prepare a multiple-step income statement. 

b. Calculate the gross profit rate and the profit margin and explain what each means. 

c. 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%.

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Research and development expense Income tax expense Loss on disposal of plant assets Cost of goods sold Rent expense Salaries and wages expense Depreciation expense Sales revenue Interest expense Advertising expense Sales returns and allowances $ 460 90 $ 114 276 46 3,104 105 5,730 161 499 280 60 Utilities expense