Answer the following question based on the scenario in Learning Activity 5. What should Mike look at on the balance sheet and income statement to determine the success of the company?

a) The assets and liabilities on the balance sheet. Are the assets greater than the liabilities? On the income statement, is the business making money? Are expenses under control? Are sales high enough to support the business?

b) The resumes and employment applications for each employee in the business

c) The business plan of the company

d) Mike doesn't need to look at the income statement or balance sheet; he just needs to know

how much money the company has in the bank.