# how do you calculate revenue?

hello, I was wandering if someone could help me figure out how much revenue this company made for the year.

the only thing given is:
Beginning of Year assets - 125,000
beginning of year liabilities - 65,000

end of year assets - 175,000
end of year liabilities - 55,000

additional issue of capital stock - 25,000
dividends - 8,000
revenue - ?
expenses - 32,000

thank you so much
I know net income - expenses = revenue
? - 32,000 = ?

Last edited by charity0216; Aug 26, 2007 at 09:00 PM.
 charity0216 Posts: 2, Reputation: 1 New Member #2 Aug 26, 2007, 09:14 PM
Originally Posted by charity0216
hello, i was wandering if someone could help me figure out how much revenue this company made for the year.

the only thing given is:
Beginning of Year assets - 125,000
beginning of year liabilities - 65,000

end of year assets - 175,000
end of year liabilities - 55,000

additional issue of capital stock - 25,000
dividends - 8,000
revenue - ?
expenses - 32,000

thank you so much
i know net income - expenses = revenue
? - 32,000 = ?
okay I think I might have it
assets - liabilities - capital stock = retained earnings
125,000 - 65,000 - 25,000 = 35,000

then
net income - retained earnings = dividends
60,000 - 35,000 = 25,000

revenue - expenses = net income
32,000 = 60,000

so 60,000 + 32,000 = 92,000

so the revenue would be 92,000?
right?
 CaptainForest Posts: 3,646, Reputation: 392 Ultra Member #3 Aug 26, 2007, 11:29 PM
BALANCE SHEET BEG OF YEAR:
Beginning of Year assets - 125,000
beginning of year liabilities - 65,000
BEG Owner’s EQUITY = 125,000 – 65,000 = 60,000

BALANCE SHEET END OF YEAR:
end of year assets - 175,000
end of year liabilities - 55,000
END OWNER”S EQUITY = 175,000 – 55,000 = 122,000

Therefore, we know that Owner’s Equity increase by 62,000 during the year (122,000 now compared to 60,000 at the beginning of the year)

We also know that..
additional issue of capital stock - 25,000
dividends - 8,000

Therefore, of the rise of 62,000, 25,000 is do to capital stock, plus there was a decrease of 8,000 for dividends.

Therefore, we know that the Net Income was 62,000 – 25,000 + 8,000 = 45,000

With a Net Income of 45,000, Plus the expenses given at 32,000, we know that the revenues must be 77,000
 Indira312 Posts: 2, Reputation: 1 New Member #4 May 16, 2012, 02:53 AM
Charity0216, why your didvidends are equal to 25,000? Is it because of the capital stock and dividends are the same thing here?
 Indira312 Posts: 2, Reputation: 1 New Member #5 May 16, 2012, 02:55 AM
Originally Posted by CaptainForest
BALANCE SHEET BEG OF YEAR:
Beginning of Year assets - 125,000
Beginning of year liabilities - 65,000
BEG Owner’s EQUITY = 125,000 – 65,000 = 60,000

BALANCE SHEET END OF YEAR:
End of year assets - 175,000
End of year liabilities - 55,000
END OWNER”S EQUITY = 175,000 – 55,000 = 122,000

Therefore, we know that Owner’s Equity increase by 62,000 during the year (122,000 now compared to 60,000 at the beginning of the year)

We also know that..
Additional issue of capital stock - 25,000
Dividends - 8,000

Therefore, of the rise of 62,000, 25,000 is do to capital stock, plus there was a decrease of 8,000 for dividends.

Therefore, we know that the Net Income was 62,000 – 25,000 + 8,000 = 45,000

With a Net Income of 45,000, Plus the expenses given at 32,000, we know that the revenues must be 77,000
Why the dividend amount (8,000) is added if you say, there's a decrease?
 pready Posts: 3,050, Reputation: 199 Ultra Member #6 May 16, 2012, 06:57 AM
Because dividends are taken out of Net Income, which reduces Ending Retained Earnings. So if you are trying to find Net Income from ending Retained Earnings you have to work the problem backwards and add Dividends to ending Retained Earnings to get Net Income for the period. To double check use your Net Income that you calculated then subtract out your Dividends and you should arrive at the ending Retained Earnings.

Beginning Owners Equity - $60,000 Ending Owners equity =$122,000
Additional Issue of stock = $25,000 Dividends paid =$8,000
Net Income = 45,000

So: Ending Owners Equity $122,000 - Beginning Owners Equity$60,000 - Additional Issue of Stock $25,000 + dividends$8,000 = Net Income $45,000 Beginning Owners Equity$60,000 + Net Income $45,000 + Additional Issue of Stock$25,000 - dividends $8,000 = Ending Owners Equity$122,000

Since your equation answer for Ending Owners Equity matches the amount in Ending Owners Equity balance of $122,00 then your Net Income for the period is$45,000
 1mamala Posts: 1, Reputation: 1 New Member #7 Aug 22, 2012, 12:47 PM
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Calculate the theater's earned revenue after the first three events have been presented.

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