Question

Gyro's Shop reported a net loss of $15,000 and total expenses of $80,000. How much are total revenues?

a. $ 15,000
b. $ 65,000
c. $ 95,000
d. The answer cannot be determined from the information given.

Answer 1

The total revenues for Gyro's Shop are calculated using the profit and loss formula and are found to be $95,000 by adding total expenses and the negative value of the net loss.

Step-by-step explanation:

The net loss reported by Gyro's Shop is $15,000 and their total expenses are $80,000. To calculate the total revenues we need to use the basic profit and loss formula: Profit (or Loss) = Total Revenues - Total Expenses. Given that the net loss represents a negative profit, we can rearrange the formula to find the total revenues: Total Revenues = Total Expenses - Net Loss. Plugging in the given numbers:

Total Revenues = $80,000 - (-$15,000)

Total Revenues = $80,000 + $15,000

Total Revenues = $95,000

Therefore, the total revenues for Gyro's Shop are $95,000.