Reference no: EM132820065

Aeta Company is engaged in the business of buying and selling heavy equipments. As of December 31 of the current year, the following information was selected from Aeta's records:

Property, plant and equipment (net, excluding land) 35,000,000
Accounts receivable 20,000,000
Prepaid insurance 2,500,000
Short-term note payable 3,000,000
Cash 5,000,000
Long-term note payable 40,000,000
Land 20,000,000
Accounts payable 8,000,000
Allowance for doubtful accounts 1,000,000
Merchandise inventory 13,000,000
Wages payable 2,000,000

Problem 1: Aeta Company's revenue for the current year was derived solely from sales. Assuming that the cost of sales is 75% of the sales revenue, the sales revenue for the current year is:

A. 75,000,000
B. 75,400,000
C. 75,200,000
D. not given