Adam Ullman
New member
In 2010, ABC Company sold 523,468 units of its product at an average price of $18 per unit. The company reported estimated Returns and allowances in 2010 of 3 percent of gross revenue. ABC Company actually purchased 550,000 units of its product from its manufacturer in 2010 at an average cost of $8 per unit. ABC Company began 2010 with 85,000 units of its product in inventory (carried at an average cost of $8 per unit). Operating expenses (excluding depreciation) for ABC Company in 2010 were $1,865,120 and depreciation expense was $100,882. ABC Company had $10,000,000 in debt outstanding throughout all of 2010. This debt carried an average interest rate of 6 percent. Finally, ABC Company's tax rate was 40 percent. ABC Company's fiscal year runs from January 1 through December 31. What did ABC Company record as net income on its 2010 income statement?