Reference no: EM132814662

As of December 31 of the current year, the following information was selected from 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: 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. 75,200,000

b. 75,400,000

c. 75,000,000

d. not given