Using the income statement shown below, answer the following questions:

Which operating expense was the most costly?

Mountain Air Bikes

Income Statement for the Year Ended

December 31, 2---

$$\begin{array}{lcc} \textbf { Net Sales } && \$ 202,736 \\ \text { Cost of Goods Sold } && \underline{\$124,375} \\ \textbf { Gross Profit } && \$\quad ? \\ \textbf { Operating Expenses } && \$ 28,022 \\ \text { Salaries } && \$ 14,211 \\ \text { Rent } && \$ 5,214 \\ \text { Utilities } && \underline{\$ 3,422} \\ \textbf { Advertising } && \$\quad ? \\ \textbf { Total Operating Expenses } && \$\quad ? \end{array}$$

Discuss why knowledge about your own living expenses is important to your business plan.

What is your net worth?

Using the income statement shown below, answer the following questions:

How much were total operating expenses?

Mountain Air Bikes

Income Statement for the Year Ended

December 31, 2---

$$\begin{array}{lcc} \textbf { Net Sales } && \$ 202,736 \\ \text { Cost of Goods Sold } && \underline{\$124,375} \\ \textbf { Gross Profit } && \$\quad ? \\ \textbf { Operating Expenses } && \$ 28,022 \\ \text { Salaries } && \$ 14,211 \\ \text { Rent } && \$ 5,214 \\ \text { Utilities } && \underline{\$ 3,422} \\ \textbf { Advertising } && \$\quad ? \\ \textbf { Total Operating Expenses } && \$\quad ? \end{array}$$

What is the cumulative amount of cash available at the end of each month?

Explain What is a personal financial statement?