Finding Revune Example ClarificationI need to know why the RE 1/1 turns from positive to negative.  Here is the information and solution equation I was told on hereRevenue UNKOWNExpenses $6000Dividends declared $3000RE 1/1 $800012/31 $90009000=8000+(Rev-6000)-3000This then is converted to the following to find RevenueRevenue=9000-8000+3000+6000Why does 8000 turn negative and 3000 and 6000 turn positive?

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Asked Nov 15, 2019
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Finding Revune Example Clarification

I need to know why the RE 1/1 turns from positive to negative.  Here is the information and solution equation I was told on here

Revenue UNKOWN

Expenses $6000

Dividends declared $3000

RE 1/1 $8000

12/31 $9000

9000=8000+(Rev-6000)-3000

This then is converted to the following to find Revenue

Revenue=9000-8000+3000+6000

Why does 8000 turn negative and 3000 and 6000 turn positive?

 

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Expert Answer

Step 1

The revenue generated is $10,0...

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