In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 530,000 units of its product at an average price of $20 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 $11 per unit. Dangerous Dragon began 2021 with 85,000 units of its product in inventory (carried at an average cost of $11 per unit). Operating expenses (excluding depreciation) for Dangerous Dragon, Inc. in 2021 were $2,099,850 and depreciation expense was $212,400. 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 $1,234,567.39 as 1234568. For example, record $1,234,567.89 as 1234568 or negative $543,210 as -543210. Your Answer: Answer
In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 530,000 units of its product at an average price of $20 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 $11 per unit. Dangerous Dragon began 2021 with 85,000 units of its product in inventory (carried at an average cost of $11 per unit). Operating expenses (excluding depreciation) for Dangerous Dragon, Inc. in 2021 were $2,099,850 and depreciation expense was $212,400. 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 $1,234,567.39 as 1234568. For example, record $1,234,567.89 as 1234568 or negative $543,210 as -543210. Your Answer: Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In 2021, Dangerous Dragon, Inc. (a retail clothing company) sold 530,000 units of its
product at an average price of $20 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 $11 per unit. Dangerous Dragon began 2021 with 85,000 units of its
product in inventory (carried at an average cost of $11 per unit). Operating expenses
(excluding depreciation) for Dangerous Dragon, Inc. in 2021 were $2,099,850 and
depreciation expense was $212,400. 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 $1,234,567.39 as 1234568. For
example, record $1,234,567.89 as 1234568 or negative $543,210 as -543210.
Your Answer:
Answer
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