The seventh and final trigger is about financial accounting. Ken and Jimmy have had their business running for two years but they are not sure how profitable their business is and how to read the financial figures. We defined our problem as How to keep the business profitable? 1. How to understand an income statement and a balance sheet ? Income statement Summarizes the revenues, expenses and results of operations for a specified period of time. The difference between the revenues and expenses is identified as the net income or net loss. Revenues (net sales) – Expenses = Income Revenue is the “top line” amount corresponding to the total bene ts generated from business activity. Income is the “bottom line” amount that results after deducting the expenses from revenue. (Walther 2010.) Balance sheet The key financial statement is known as the balance sheet. It states the economic resources owned by an entity and the claims against those resource