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lets take a look at the income statement this is another one of accountings very important financial documents it gives the answer to a very important question in fact a question that many feel is the most important question in all of business which is are you making money how do we solve this well very simple we take revenue which is money that comes in we subtract expenses money that goes out and then we see what happens if its a positive number yay profit its a negative number got problems to fix lets take a look at what document we can use for this and how that relates to our individual lives so here ive laid out in microsoft excel an income statement and this income statement is one that will help answer the revenue and expenses question from a personal perspective in order to get started im going to do something real quick which is just change the format of these cells so that it is an accounting number and now itll come out like money great so we start first with the re