I'm lost on how to do calculate revenues, expenses, and income. Can anyone tell me how to do this? I am a student online at Axia. HELP!!!!!!
What have you learned about these calculations from your text materials?
Do you see any examples of these calculations?
If you can't find this information in your text, please ask your Axia instructor for help. S/he is the best person to direct you.
That is the problem, there is no examples and the instructor(he) says he can not give any examples. Here is what I have to work with
a b c d
Sales $60,000 $42,500 $36,000 ?
Cost of
goods sold
Merchandise 6,000 17,050 7,500 7,000
inventory(begin)
Total cost
of purchase36,000 ? ? 32,000
Mer. invent.
(ending) ? (2,700)(9,000)(6,600
Cost of
goods sold 34,050 15,900 ? ?
Gross Profit ? ? 3,750 45,600
Expenses 9,000 10,650 12,150 2,600
Net income
(loss) ? $15,950$(8,400)$43,000
If neither your text nor your instructor has given you any examples for calculating these items, then you're faced with a nearly impossible situation. Any good educational program provides examples.
Of course! I can help you understand how to calculate revenues, expenses, and income.
Revenues, expenses, and income are essential components of financial statements used to measure the financial performance of a business or an individual.
1. Revenue: Revenue, also known as sales or turnover, represents the total amount of money a business generates from selling its products or services. To calculate revenue, multiply the quantity of goods sold by the price at which they were sold. This formula can be expressed as:
Revenue = Quantity of Goods Sold * Price
2. Expenses: Expenses are the costs incurred by a business while generating revenue. They include salaries, utilities, rent, marketing expenses, and more. Calculating total expenses involves adding up all these costs over a specific period, such as a month or a year.
3. Income: Income, also referred to as net income or profit, is the amount that remains after deducting expenses from revenues. Net income indicates the financial health and profitability of a business. The formula for calculating net income is:
Net Income = Revenue - Expenses
It's important to note that expenses can be categorized into two types: operating expenses and non-operating expenses. Operating expenses are directly associated with the daily operations of a business, such as wages, rent, and utilities. Non-operating expenses are incidental costs like interest expenses or taxes.
When preparing financial statements, revenues, expenses, and income are usually presented together in an income statement or profit and loss statement. This statement provides an overview of the financial performance of a business over a specific period.
Remember, it's crucial to keep accurate records of revenues and expenses to ensure the reliability of your calculations. Additionally, to fully understand these concepts and apply them effectively, consider studying accounting principles or consulting relevant textbooks and resources.