Earlier in this course, you chose a type of business and form of ownership for your company. You’ve also come up with a mission statement, values and vision statement, and corporate goals. The final step is to create a Profit and Loss Statement (AKA, Income Statement) based on your business.

STEP 1: Review the Profit and Loss video to learn how to create your Profit and Loss Statement.
STEP 2: Open and save the Profit and Loss Statement template. Answer each question and scenario below using the template and figures as your guide.

1. Set up the attached Profit and Loss Statement for your business according to the Profit and Loss video.
2. After determining what your net profit is for the year, increase revenue for half of the year by 20% and raise expenses in each category by 5%.
3. Increase cost of goods by 25% and analyze how this affects your net profit.
4. Write a one page summary of your projected expense increase based on your analysis. How does this affect your staff, productivity or salaries?
5. Assume that your insured clients will now pay ½ of what they did for your product/service for 2011. How will this affect your bottom line?