Smith Corporation has provided the following information: Cash sales totaled $125,000.
Credit sales totaled $279,000.
Cash collections from customers for services yet to be provided totaled $38,000.
An $11,000 gain from the sale of property and equipment occurred.
Interest income totaled $7,700.
How much were Smith's operating revenues?
A) $404,000.
B) $411,700.
C)$442,000.
D)$460,700.

Question

Quizplus · Accepted Answer

Operating revenues include cash sales and credit sales. Therefore, Smith's operating revenues are $125,000 (cash sales) + $279,000 (credit sales) = $404,000. The other items listed are not part of operating revenues.

Smith Corporation Has Provided the Following Information: Cash Sales Totaled