A(n) (a)   price represents how much money it costs a business to make or obtain the products or how much it costs a business to perform the service. [Selling Price]

A(n) (a)   is a financial report that shows a company's assets, liabilities, and equity for a specific period. [Basic Financial Statements]

(a)   is the owner's remaining value after all liabilities have been deducted. [Basic Financial Statements]

A(n) (a)   statement, also known as a profit and loss statement, shows the total revenues and expenses for a specific period. [Basic Financial Statements]

The (a)   point is the amount of revenue required to cover expenses. [Basic Financial Statements]

The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.

Ben owns a shoe store. He has a new line of limited-edition running shoes that he will be selling in his store soon. The cost of manufacturing the shoes was $18 per pair, and he wants to make a 20% profit on each pair he sells. What is Ben’s selling price?

(a)  

The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.

Adam owns a restaurant. A new dish is being added to the restaurant’s menu. The cost of making the dish is $6.75, and he wants to make a 33% profit on each dish he sells. What is Adam’s selling price?

(a)  

The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.

Cory owns a home goods store. He is about to add a new line of candles to his store. The cost of manufacturing the candles is $8.46 per candle, and he wants to make a 52% profit on each candle. What is Cory’s selling price?

(a)  

Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.

Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?

(a)  

Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.

Ashley sells cars. She has $26,000 in cash, $34,000 in inventory, a $4,600 credit card balance, and $7,900 in long-term debt. What is Ashley’s

equity?

(a)  

Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.

Mindy owns a restaurant. She has $14,200 in cash, $2,600 in inventory, $5,000 in equipment, a $3,800 credit card balance, and $1,400 in long-term debt. What is Mindy’s equity?

(a)  

Subtracting the cost of goods from income calculates gross income.

Mallory sells hats. Last month, Mallory had an income of $3,800, her cost of goods was $875, and her total expenses were $1,400. What was Mallory’s gross income?

(a)  

Subtracting the cost of goods and expenses from income calculates net income.

Karen’s income last month was $5,400. Her cost of goods was $925, and her total expenses were $3,300. What was Karen’s net income?

(a)  

Subtracting the cost of goods and expenses from income calculates net income. Subtracting the cost of goods from income calculates gross income.

Jane owns a dress-making business. Her income last quarter was $8,000, her cost of goods was $1,500, and her total expenses were $3,000. What were Jane’s gross income?

(a)  

Subtracting the cost of goods and expenses from income calculates net income. Subtracting the cost of goods from income calculates gross income.

Jane owns a dress-making business. Her income last quarter was $8,000, her cost of goods was $1,500, and her total expenses were $3,000. What were Jane’s net income?

(a)  

Dividing total expenses by sales price calculates a break-even point.

Gabe owns a candied nut cart. He sells his cup of nuts for $6, and his monthly cost is $810. How many cups of candied nuts does Gabe need to sell to break even?

(a)  

Dividing total expenses by sales price calculates a break-even point.

Chuck owns a pizza shop. He only sells large pizzas and charges $18 per pizza. His total monthly cost is $2,600. How many pizzas does Chuck have to sell to break even each month?

(a)  

Fixed costs remain the same no matter the volume of (a)   . [Fixed and Variable Costs]

Variable costs (a)   depending on production. [Fixed and Variable Costs]

A (a)   is used to identify the amount of cash a company is spending every month. [Analyze a Company’s Cash Flow]

A (a)   is used to make projections about a company’s future performance. [Analyze a Company’s Cash Flow]

Return on investment (ROI) is used by businesses to show them how much their (a)   is earning. [ROI]

ROI gives business owners a way to calculate whether their product or service is (a)   or if they need to make adjustments. [ROI]

Subtracting total costs from total cash calculates an ending cash balance.

Zach owns a car detailing shop. Last year, he had a beginning cash balance of $5,600, total cash sales of $21,800, $4,700 in utilities, $3,400 in loan payments, and $1,200 in marketing costs. What was Zach’s ending cash balance for last year?

(a)  

Subtracting total costs from total cash calculates an ending cash balance.

Clara owns a bakery. Last year, she had a beginning cash balance of $3,700, total cash sales of $16,500, $3,700 in utilities, $2,500 in loan payments, and $1,600 in marketing costs. What was Clara’s ending cash balance for last year?

(a)  

A run rate predicts a company’s future performance by using the current financials for a specific period, usually a month, to predict the company's future performance. Multiplying a month’s revenue by 12 calculates a run rate.

Andrea owns a food truck. Last month, her starting balance was $3,400, her ending balance was $5,300, and her revenue was $4,700. What is Andrea’s current run rate?

(a)  

A burn rate identifies the amount of cash a company is spending every month and measures cash flow. Subtracting a month’s ending balance from a month’s starting balance calculates a burn rate.

Andrea owns a food truck. Last month, her starting balance was $3,400, her ending balance was $5,300, and her revenue was $4,700. What is Andrea’s burn rate for last month?

(a)  

A run rate predicts a company’s future performance by using the current financials for a specific period, usually a month, to predict the company's future performance. Multiplying a month’s revenue by 12 calculates a run rate.

Melinda sells candles. Last month, her starting balance was $6,200, her ending balance was $4,900, and her revenue was $2,300. What was Melinda’s current run rate?

(a)  

A burn rate identifies the amount of cash a company is spending every month and measures cash flow. Subtracting a month’s ending balance from a month’s starting balance calculates a burn rate.

Melinda sells candles. Last month, her starting balance was $6,200, her ending balance was $4,900, and her revenue was $2,300. What was Melinda’s burn rate for last month?

(a)  

Subtracting the cost of investment from the value of investment calculates net profit. Dividing net profit by the cost of investment, then multiplying the result by 100 calculates ROI.

Tina sells cookies. What is Tina’s ROI?

a. Production cost: $7.65/box of cookies

b. Selling price: $12/boxes of cookies

(a)  

Subtracting the cost of investment from the value of investment calculates net profit. Dividing net profit by the cost of investment, then multiplying the result by 100 calculates ROI.

Sherry sells purses. What is Sherry’s ROI?

a. Production cost: $17.20/purse

b. Selling price: $30/purse

(a)  

Subtracting the cost of investment from the value of investment calculates net profit. Dividing net profit by the cost of investment, then multiplying the result by 100 calculates ROI.

Chris provides tree trimming services. What is Chris’s ROI?

a. Production cost: $48.89/tree trim

b. Selling price: $65/tree trim

(a)  

An operating budget outlines the (a)   a business will need to run efficiently. [Operating Budget and Startup Costs]

An operating budget includes a breakdown of all of a company's fixed and variable monthly costs and operating expenses such as depreciation and interest on (a)   . [Operating Budget and Startup Costs]

Bootstrapping is where an owner uses their own (a)   to fund a business. [Funding Options and Requirements]

The Small Business Administration (SBA) makes it easier for small businesses to get loans by reducing the (a)   for lenders, community development organizations, and other lending institutions. [Funding Options and Requirements]