Joe Phum operates a wholesale clothing operation called Phum’s Designs. All the sales and purchases of the business are made on credit. The opening and closing balances for accounts receivable, accounts payable and inventory are shown below.

During the reporting period, Joe Phum received $58 000 from accounts receivable and paid $36000 to suppliers.

Required
Calculate the revenue from sales, cost of sales and gross profit for the reporting period for Phum’s Designs.

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Accounts receivable Inventory Accounts payable At start of period $ 3000 12 000 4 000 At end of period $ 5800 15200 6100