Goller Company Has the Following Income Statement for the Year $\begin{array}{ll}\text { Sales } & \$ 1,562 \\\text { Cost of goods sold } & {806} \\\text { Gross profit } &{756}\end{array}$

question 78

Multiple Choice

Goller Company has the following income statement for the year ending December 31,2016:
$\begin{array}{ll}\text { Sales } & \$ 1,562 \\\text { Cost of goods sold } & {806} \\\text { Gross profit } &{756}\end{array}$
Operating expenses:
$\begin{array}{ll}\text { Wage expense } & 160 \\\text { Depreciation expense } & 26 \\\text { Rent expense } & 36 \\\text { Miscellaneous expense } & \underline{70} \\\text { Total operating expenses } & \underline{292} \\\text { Operating income } & 464 \\\text { Income tax expense } & \underline{100} \\\text { Net income } & \$ 364\end{array}$
If Goller Company prepares a common size income statement,what will they report for Income tax expense?

• A) 6.4%
• B) 11.0%
• C) 12.4%
• D) 39.9%

---

Definitions:

Unethical Consumer Behavior

Actions by consumers that are considered morally wrong or unacceptable by societal standards, such as shoplifting or fraudulent returns.

Fraudulent Automobile Insurance

Illicit activities involving deception to unlawfully obtain payment or benefits from an auto insurance policy.

Unauthorized Downloading

The act of obtaining digital content such as music, movies, or software without permission from the copyright holder, usually in violation of copyright laws.

Social Responsibility

The ethical framework that suggests an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.