Section 3: Use this data to fill in the Final Income Statement below. Use FIFO if necessary. Use straight line depreciation if necessary.  (50 points)

a)	Sales for the year were:  $2,000 in Jan, $4,400 in Feb, $8,350 in Mar, $12,000 in Apr, $20,500 in May, $30,000 in Jun, $16,550 in Jul, $8,400 in Aug, $8,100 in Sep, $4,900 in Oct, $5,860 in Nov, and $15,300 in Dec.
b)	The monthly invoice for Fire Insurance was $120.
c)	You paid the local newspaper $25 / week for your advertising space over the course of the year.
d)	Thompson's Department Store went out of business and owed you $500 for assembled bikes that you had sold them on credit.      You received $100 in a court settlement.
e)	You paid First State Bank $250 each month for your business loan that consisted of $225 of principal and $25 of interest.
f)	You paid Western Realty $175 each month for rent.
g)	In July, your compressor broke and it cost you $195 to have it fixed.
h)	Each quarter, your CPA came and prepared financial statements and tax returns at a cost of $350 per visit.
i)	Light bulbs, toilet paper, paper towels, and other similar items cost you about $50 each month.
j)	You paid Nestor's Oil company an annual fee of $200 to keep your heating and air conditioning units working properly.
k)	From Jan. through May, you paid ABC Rentals $50 / month for a bicycle assembly stand.
l)	From June through December, you paid ABC Rentals $95 / month for two assembly stands.
m)	Each month, you took $2,000 as a salary.
n)	When you started the business in Dec. of last year, you invested $15,000 and bought 100 assembled bikes at $75 each.
o)	You sold 40 bikes for the Christmas season and had 60 left starting this year.
p)	During the course of the year, you purchased kits for 1,450 bikes at the average cost of $50 in parts.      You sold 1,326 bicycles this year.
q)	Each month, you paid your assemblers $15 per bike assembled.      (By year's end all kits were assembled).
r)	During your first month, last December, you bought a used delivery truck for $5,000.  You figured it had a useful life of only 2 years since it was an older used truck.
s)	In May, June, Nov. and Dec., you placed special ads in the local paper to interest people in your bikes right before the Summer and Christmas seasons.      These ads cost a total of $650.
t)	In June, you started a medical insurance program for your employees that cost your company $500 / month.
u)	At the end of December, you gave yourself a Christmas bonus of $5,000.
v)	At the end of December, you pre-paid the store's $1,014 estimated income tax bill.  It was 20% of your pre-tax profits.

Only enter whole dollar values. Do not include dollar signs ($), commas (,), or periods (.).
Ex: Ten thousand dollars is 10000

Final Income Statement      For the period covering 1/1/04 through 12/31/04
Revenue:
Beginning Inventory
Purchases
Labor
Total Available for Sale
Ending Inventory
Cost of Goods Sold:
Gross Profit:
Expenses:
Advertising
Bad Debt
Benefits
Depreciation
Equipment Rentals
Insurance
Interest
Maintenance
Professional Services
Rent
Repairs
Salaries
Supplies
Total Expenses:
Net Profit:
Income Taxes:
Net Profit After Taxes:

Section 4: Calculate the answer for part A and give a short answer to part B, BELOW.  (9 points)

4-A) What was your profit margin? (based after taxes)    (4 pts.)
          Hint: The answer should be a percentage, with one decimal place. (EX: 99.9%)
         

4-B) The current interest paid by the bank on savings is 6.25%. Was this venture, the Seton Bicycle Co., worth the effort?
          Why? Please give at least 4 reasons for your answer. Be sure to calculate the interest that you could have earned if you had put the money in the bank, and compare that to your actual earnings and other considerations, if any.  Also be sure to calculate the R.O.I. [or Return on Investment] and compare that to the interest rate.
          (5 pts.)