Company reported estimated returns and allowances

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Reference no: EM131814245

In 2010, Dangerous Dragon, Inc. (a retail clothing company) sold 562329 units of its product at an average price of $ 15 per unit. The company reported estimated Returns and allowances in 2010 of 3 percent of gross revenue. Dangerous Dragon actually purchased 550,000 units of its product from its manufacturer in 2010 at an average cost of $ 12 per unit. Dangerous Dragon began 2010 with 85,000 units of its product in inventory (carried at an average cost of $ 12 per unit). Operating expenses (excluding depreciation) for Dangerous Dragon, Inc. in 2010 were $ 2184590 and depreciation expense was $ 104,509 . Dangerous Dragon had $10,000,000 in debt outstanding throughout all of 2010. This debt carried an average interest rate of 6 percent. Finally, Dangerous Dragon's tax rate was 40 percent. Dangerous Dragon's fiscal year runs from January 1 through December 31. Given this information, construct Dangerous Dragon's 2010 multi-step income statement. What did Dangerous Dragon, Inc. record as NET INCOME on its 2010 income statement?

Reference no: EM131814245

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