Preparation should result in allowing the entrepreneur to make decisions for
- determining capital/cash needs
- monitoring expenses
- helping to secure financing.
Process/Skill Questions:
- What is an income statement, and what financial data does it include?
- What are the benefits of preparing a projected income statement?
- What formula is used to calculate an income statement?
- What is the role of the income statement in determining a business's profit?
- What is the gross margin?
- What are variable expenses? What are examples?
- What are fixed costs? What are examples?
- How can a business owner use the income statement to monitor the budget?