During the development stage in a new venture's life cycle, the income statement typically shows: Startup financing (e.g., financing from business angels and venture capitalists) usually occurs during the development stage in a new venture's life cycle. "Cost of goods sold" is the cost of materials, labor, and advertising incurred to produce the products that were sold. no sales but expenses such as rent, utilities, and a subsistence salary for the entrepreneur. net sales, earnings before interest, taxes, depreciation, and amortization