Suppose in its income statement for the year ended June 30, 2025, The Clorox Company reported the following condensed data (dollars in millions).

Salaries and wages expenses $ 350 Research and development expense $ 70
Depreciation expense 70 Income tax expense 232
Sales revenue 3,990 Loss on disposal of plant assets 35
Interest expense 140 Cost of goods sold 1,995
Advertising expense 350 Rent expense 70
Sales returns and allowances 192 Utilities expense 35

Assume a tax rate of 34%.
A) Prepare a multiple-step income statement. Calculate the gross profit rate and the profit margin
B) Assume the marketing department has presented a plan to increase advertising expenses by $210 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 20%. (Hint: Increase both sales revenue and sales returns and allowances by 20%.) (Assume a tax rate of 34%, and round all amounts to whole dollars.)