In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 503,100 units of it product at an average price of $15 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 $12 per unit. Dangerous Dragon began 2021 with 85,000 units of it product in inventory (carried at an average cost of $12 per unit). Operating expenses (excluding depreciation) for Dangerous Dragon, Inc. in 2021 were $1,961,780 and depreciation expense was $212,460. 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?

In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 503,100 units of it product at an average price of $15 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 $12 per unit. Dangerous Dragon began 2021 with 85,000 units of it product in inventory (carried at an average cost of $12 per unit). Operating expenses (excluding depreciation) for Dangerous Dragon, Inc. in 2021 were $1,961,780 and depreciation expense was $212,460. 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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2EA: Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019,...

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

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In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 503,100 units of its
product at an average price of $15 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 $12 per unit. Dangerous Dragon began 2021 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 2021 were $1,961,780 and
depreciation expense was $212,460. 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?

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