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 $ 480 Research and development expense $ 130 Depreciation expense 75 Income tax expense 339 Sales revenue 5,515 Loss on disposal of plant assets 45 Interest expense 150 Cost of goods sold 2,618 Advertising expense 550 Rent expense 120 Sales returns and allowances 280 Utilities expense 70 Assume a tax rate of 34%.

Using the data, assume the marketing department has presented a plan to increase advertising expenses by $387 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 25%.

Prepare a multiple-step income statement. (Round answers to 0 decimal places, e.g. 15,222.)

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To prepare a multiplestep income statement for The Clorox Company after the marketing departments pl... View the full answer