In 2010, Dangerous Dragon, Inc. (a retail clothing company) sold 560,019 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 $11 per unit.Dangerous Dragon began 2010 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 2010 were $1,980,268 and depreciation expense was $157,611.
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?