U sing the following information, compute total revenues. Caution: Not all of th

Question

Using the following information, compute total revenues.  Caution: Not all of the items listed should be included in the computation of total revenues.

Cost of goods sold

$   14,600

Wages payable

$   325

Interest revenue

700

Accounts receivable

1,050

Advertising expense

2,650

Retained earnings

5,800

Cash

800

Consulting revenue

1,900

Sales

18,300

  

Cost of goods sold

     

$   14,600

     

Wages payable

     

$   325

     

Interest revenue

     

700

     

Accounts receivable

     

1,050

     

Advertising expense

     

2,650

     

Retained earnings

     

5,800

     

Cash

     

800

     

Consulting revenue

     

1,900

     

Sales

     

18,300

     

     

   Using the following information, compute total revenues. Caution: Not all of the items listed should be included in the computation of total revenues.

Explanation / Answer

13600 -10200 = gross profit
2700 + 900 = other income
2150+475 = expenses
obviously none of these numbers will give you net profit

total revenue = sales + other income
if you want to take the net income road then gross profit + other income

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