1. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar.

   Rushmore Biking Inc.
   Income Statement
   For the Month Ended February 28
   Revenues				$
   Cost of Goods Sold
   Gross Profit				$
   Selling and Administrative Expenses:
   Selling Expenses		$
   Administrative Expenses
   Total Selling and Administrative Expenses
   Operating Income				$

2. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar.

   Materials inventory, February 28	$
   Work in process inventory, February 28	$
   Finished goods inventory, February 28	$