Remainder

And, of course, as I mentioned, this cost has corresponding benefits.

It describes it right over here the change in equity, sometime the change in retained earnings, or just change in equity, that is going to be the 200 in net income that the company got over that time period.

Are the profits exclusive of taxes?

And a significant minority of those 500 million people

Before Interest and Taxes.

Now sometimes I'm asked, if this commitment to ethical behavior affects the bottom line.

So I'll do a line here. I'll subtract that from that.

Afterwards, we have about a dozen or so binary rules.

This can is from a surplus disposal run.

The loan bears an 8 interest.

Cannot calculate the remainder on 0.

Either stolen or war surplus.

Minus 500,000.

Energy is all around us, but we don't mean the current coming from the socket in your wall.

They decide what to do.

That is the resource that I'm talking about.

I think that has been a big savior, even now.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

And when people talk about earnings of a company, this is what they're talking about.

Then Bob selects his private random number, say 13, and calculates

Our interests clash with theirs.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

I know my law. DEVLlN

And you could guess what the next line is going to be, given that this says pre tax.

(Laughter)

But here you see it means very, very different things.

And so you can already imagine that both EBlT and the way I defined it initially, operating profit divided by assets.

The taxes will be 153,000.

This is really important to pay attention to, because so many people say, oh, a company made this much.

In the remaining time, I'd like to tell you two features of them.

And then they'll say well in the most naive interpretation of things, you net income in theory should be the cash you're getting or at least it's some type of profit you're getting assets in the door or at least you're counting as if you're getting some assets in the door.

I'll just abbreviate that as Nl.

Old war surplus that he bought on his veteran training.

Go ahead, eat.

Money lenders are enjoying a profitable period.

If this technology is widely adopted,

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

Maybe it was 4 , or 3.5 .

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.

FDlC insured.

The rewards would be... enormous.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

We have no spare money.