Hello Everyone, I am sure many of you will all have different answers based on your understanding and reading to date. We did so someting similar a few weeks back and this exercise will show you how accountants can complete a financial statement with the same information but come back with different answers Have fun with it! Yes, I said fun. Please post early and often. Hint: The discussion and answers to this assignment will help you for part of your final best, Hint. You will get something very similar on the final test. Good Luck) Mark I want you to create an Income Statement and answer two (2) questions below in your post Q1) Using the financial info below calculate how much profit did EZ fitness make in her first year of operations? Q2) Do you think Elizabeth Zuckerberg made the right decision to start her own business? EZ Fitness Just Exercise! Elizabeth Zuckerberg worked during her summer breaks from school at a local YMCA. She loved going to work every day! She enjoyed working with customers and helping people get healthy After high school Elizabeth went to college to study business and entrepreneurship and continued to work at the YMCA part-time as well as during her summer breaks. Elizabeth successfuly graduated with her Business degree and then worked full time for the YMCA in charge of the exercise classes and weight room. Her gross salary was $37,000 annually Elizabeth did this for two years after graduation and then decided to branch out and start her very own fitness center. Elizabeth used lessons leamed bom her Business degree on how to get started and after her first year of business she looked back on her financial information to see if she had made the right decision Elizabeth invested heavily in marketing her business and spent $5,500 on radio advertisements and a variety of print materials. Elizabeth purchased industrial exercise equipment for $200,000 that she estimated would last 5 years and would have no salvage value. Beth also purchased a minivan for the business with advertising on the side for $12,000 and she predicted the mini-van would last) 3 years with $3,000 salvage value. At the end of Beth's first year of business (Dec 31 ) she had received $169,000 in cash but was owed $11,000 from unpaid accounts After reviewing the company's bank account on-line and copies of receipts you summarize the following expenses in addition to the monies previously spent during Beth's first year of business Gas Part-Time Wages Rent (Office & Workout Facility) Repairs & Maintenance $2,000 $37.900 $33,000 $4,500 Beth had not yet paid Dec's rent that she owes for $3,000. Insurance (3-Year Policy) $4,500 Usities $7.900 Supplies $3.600 Misc Expense $1,100