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Alice's Income Statement Paper

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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?
My current financial situation is dire; I am on disability and have an income of less than $12,000 per year. I am a widow who lost all my assets, including my home. All my resources were needed to take care of my terminally ill husband. I do not have any large debt or loans, but I do have monthly living expenses. I have a very small apartment and pay rent. Some items are in storage and require I pay a monthly storage …show more content…
If, so what are you doing with the surplus? I have very little surplus, but what I have left goes into savings.

Do you have a deficit? There is no deficit at this time, but my budget is tight.

What can you do about that?
I am studying for a Business Administration degree to stay both current and marketable. I have a bachelor’s and master’s degree in education and a certification as a Certified Adjunct Faculty Educator. I volunteer with a number of organizations to speak and facilitate various workshops.
Which of your expenses has the greatest effect on your bottom line?
My storage bill is and my college exam expenses have the greatest effect on my bottom line.
What is the biggest expense?
My biggest expense is my bi-monthly college exam fee. I don’t qualify for scholarships or grants since I have two college degrees. The money takes a large chunk out of my income, but I do consider it a much needed investment.
Which expenses would be easiest to reduce or eliminate?
I have plans to clear out the storage in the next 12 months. It is a challenge sense I am disabled and do not drive any longer, but it is the easiest of all my expenses to reduce.
How else could you reduce

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