Question

In Baer Food Co.'s 2016 single-step income statement, the section titled "Revenues" consisted of the following:

Net sales revenue $187,000
Income on discontinued operations, including gain on disposal of $21,000, and tax expense of $6,000 13,500
Interest revenue 10,200
Gain on sale of equipment 4,700
Total revenues $215,400
In the revenues section of the 2016 income statement, Baer Food should have reported total revenues of
a) $201,900
b) $203,700
c) $215,400
d) $216,300

Answer 1

To determine the total revenues in the income statement, add up all the components mentioned in the 'Revenues' section.

Step-by-step explanation:

To determine the total revenues in the income statement, you need to add up all the components mentioned in the 'Revenues' section. In this case, the components are net sales revenue, income on discontinued operations including gain on disposal, tax expense, interest revenue, and gain on sale of equipment.

Net sales revenue: $187,000

Income on discontinued operations, including gain on disposal: $21,000

Tax expense: $6,000

Interest revenue: $10,200

Gain on sale of equipment: $4,700

Total revenues: $187,000 + $21,000 - $6,000 + $10,200 + $4,700 = $215,400

Therefore, the correct answer is c) $215,400.