Question

Crane Company had the following account balances:

Sales revenue $ 445000
Cost of goods sold 218000
Salaries and wages expense 28500
Depreciation expense 58500
Dividend revenue 10500
Utilities expense 24000
Rent revenue 58000
Interest expense 35500
Sales returns and allow. 34000
Advertising expense 39500

What would Crane report as total revenues in a single-step income statement?

Answer 1

Answer:

The correct answer is $479,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the total revenue by using following formula:

Total revenue = Net sale + Dividend revenue  + Rent revenue

Where, Net sales = Sales revenue - Sales return

= $445,000 - $34,000 = $411,000

By putting the value in the formula, we get

Total revenue = $411,000 + $10,500 + $58,000

= $479,500