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%

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