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Unformatted text preview: HSM 260 Axia College Material Appendix B Statement of Earnings How often have you added up all your monthly expenses and compared the sum against how much you make? If you have done this you have created a statement of net earnings, much like a human resources company. Lets take this a step further. Rather than adding up all your expenses, try sorting them into categories. Find and list the total amount you spent on rent, utilities, food, gas and car payments, for example. Now make a list of these five items and others on a sheet of paper. This personal income statement might be very similar to the statement of activities found on p. 23 of the text. If your expenses are greater than your revenues, or pay, then you must either reduce expenses or increase cash receipts, or both. If the trend in an organizations income statement shows continued losses, action must be taken or the organization will run out of money and the operation will have to close. The income statement, or statement of earnings, tells you how well the organization is managing its resources....
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- Spring '10