Question 6 (6 points) In 2010, Dangerous Dragon, Inc. (a retail clothing company) sold 564,611 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 $ 1,967,793 and depreciation expense was $ 124,093. 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? Question 8 (7 points) Construct a balance sheet for Saylor's Tables given the following data (assume that the items listed below are the only entries on Saylor's balance sheet). What is total shareholders' equity? Cash = $ 539 Long-term debt = $ 873 Net Property = $ 642 Accounts receivable = $ 918 Inventory = $ 611 Accounts payable = $ 990 Total shareholders' equity = ??? 2009 2010 Gross fixed assets $ $ 12,998,017 15,271,752 (Accumulated ( 2,684,231 ( 4,072,024 depreciation) ) Assuming that the company did not sell any long-term assets in 2010 what did Creech report as Depreciation expense on its 2010 income statement