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Monopinkladies · Jan 31, 2010, 03:37 PM

After several hours of trying to figure this out. Net income - expenses = revenue. The problem is that the question says not all items listed are included in the calculation of total revenue. Assets - liabilities - capital stock = retained earnings (We are given retained earnings as 6,400)
Net income - expenses = revenue

I guess Im just really confused are we suppose to calculate net income, calculate expenses and subtract to find Total revenue?

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.. . $10,200 Wages payable.. . $ 475
Interest revenue.. . 900 Accounts receivable.. . 950
Advertising expense.. . 2,150 Retained earnings.. . 6,400
Cash.. . 700 Consulting revenue.. . 2,700
Sales.. . 13,600

morgaine300 · Feb 4, 2010, 10:17 PM

Originally Posted by Monopinkladies

Net income - expenses = revenue

Let's fix this and that might help.

Revenues - expenses = Net income

Therefore to go backwards: net income PLUS expenses = revenue.

Yugandha · Jul 12, 2012, 12:01 AM

It should be

17200 = 900(Int. revenue )+13600(Sales) + 2700 ( Consulting revenue)

paraclete · Jul 12, 2012, 12:27 AM

Originally Posted by Monopinkladies

After several hours of trying to figure this out. Net income - expenses = revenue. The problem is that the question says not all items listed are included in the calculation of total revenue. Assets - liabilities - capital stock = retained earnings (We are given retained earnings as 6,400)
Net income - expenses = revenue

I guess I'm just really confused are we suppose to calculate net income, calculate expenses and subtract to find Total revenue?

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 . . . . . . . $10,200 Wages payable . . . . . . . . $ 475
Interest revenue . . . . . . . . . . 900 Accounts receivable . . . . 950
Advertising expense . . . . . . 2,150 Retained earnings . . . . . . 6,400
Cash . . . . . . . . . . . . . . . . . . 700 Consulting revenue . . . . . 2,700
Sales . . . . . . . . . . . . . . . . . 13,600

look you are given a number of items both revenue and expenses as well as some balance sheet items

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