Reference no: EM133120148
Prepare a personal income statement for the past year, using the same format as Alice's income statement in this chapter. Include all relevant categories of income and expenses.
-What does your income statement tell you about your current financial situation?
-For example, where does your income come from, and where does it go?
-Do you have a surplus of income over expenses? If, so what are you doing with the surplus?
-Do you have a deficit?
-What can you do about that?
-Which of your expenses has the greatest effect on your bottom line?
-What is the biggest expense?
-Which expenses would be easiest to reduce or eliminate?
-How else could you reduce expenses?
-Realistically, how could you increase your income?
-How would you like your income statement for the next year to look?Learning Journal entry: What are the important lessons you have learned from this exercise. (It is not required that you submit the personal income statement.)