Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 580,200 units of its product at an average price of $19 per unit. The company

image text in transcribed
In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 580,200 units of its product at an average price of $19 per unit. The company reported estimated Returns and allowances in 2021 of 3 percent of gross revenue. Dangerous Dragon actually purchased 550,000 units of its product from its manufacturer in 2021 at an average cost of $10 per unit. Dangerous Dragon began 2021 with 85,000 units of its product in inventory (carried at an average cost of $10 per unit). Operating expenses (excluding depreciation) for Dangerous Dragon, Inc. in 2021 were $1,986,580 and depreciation expense was $204,170. Dangerous Dragon had $10,000,000 in debt outstanding throughout all of 2021. 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 multi-step income statement for 2021. What did Dangerous Dragon, Inc. record as NET INCOME on its 2021 income statement? Record your answer rounded to the nearest dollar. Do not include a dollar sign or commas in your answer. For example, record $1,234,567.89 as 1234568 . For example, record $1,234,567.89 as 1234568 or negative $543,210 as 543210

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to Investment Banks, Hedge Funds, and Private Equity

Authors: David P. Stowell

1st edition

978-0123745033, 0123745039, 978-9380931074

More Books

Students also viewed these Finance questions