Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter S, Problem 3P
Computing Effective Tax Rates
LOS-4 Below is Columbia Sportwear’s 2012 income statement. What is Columbia’s effective tax rate?
| COLUMBIA SPORTSWEAR COMPANY Consolidated Statements of Operations (in thousands, except per share amounts) |
|||
| 2012 | Year Ended December 31 2011 | 2010 | |
| Net sales | $1,669,563 | $1.693,985 | $1,483,524 |
| Cost of sales | 953,169 | 958,677 | 854,120 |
| Gross profit | 716,394 | 735,308 | 629,404 |
| Selling, general, and administrative expenses | 596,635 | 614,658 | 534,068 |
| Net licensing income | 13,769 | 15,756 | 7,991 |
| Income from operations | 133,528 | 136,406 | 103,327 |
| Interest income, net | 379 | 1,274 | 1,564 |
| Income before income tax | 133,907 | 137,680 | 104,891 |
| Income tax expense (Note 10) | (34,048) | (34,201) | (27,854) |
| Net income | $99,859 | $103,479 | $77,037 |
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Chapter S Solutions
Financial Accounting
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