The earnings I just said, this is actually what happened to the company.

And so I'm left with net income of 350,000.

Travel agencies' profits soared.

The company's profitability improved.

And what's left over for the equity?

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

The company's profits soared.

If I'm paying 10 today for 2 of earnings in 2009, the Price to Earnings of 5 for Company A.

And I was part of that.

But then when you look at the current earnings, they look similar.

So let's say we're looking at this on January 1, 2009.

Let's say that we don't know that they're truly equal.

They're all jumbled up as just kind of the company is making this much money.

And let's say that it's 2008 earnings.

And how they were going to create demand was through search ads, social media, stadium promotions.

So the way I think about it, and probably the way you should think about it, is the earnings of a company in this case, we have 350,000 for the year, or 0.35 per share.

Now, immediately if you were to see this is the real market, where you see two identical companies or you think they're identical companies and one is trading at a lower multiple or a lower Price to Earnings multiple than the other, you should be very suspicious.

And that's how much operating profit my widget company has produced.

I know one guy who's spent 4,000 just on Photoshop over the years.

So a plus b have to be equal to 50.

So let's assume that this area represents a discount from the list price, let's say 10 .

But it's going to continue to grow.

So just when you look at it superficially right here, when you take Price to Earnings and actually just as a little aside, whenever someone says the Price to Earnings ratio is 10, or the Price to Earnings for Company B is 4, the first thing you should ask is, what earnings are you using?

Profitable.

It's closer to a bank account that Company B, sure it made 5 in earnings, but that is risky.

There's kind of a general rule of thumb that if a company is not doing anything, it's just stable, safe, not moving up or down, that a fair or a cheap Price to Earnings is 10 times this year or last year.

And so the way to think about it is if you're paying 3.50 per share for this company, and let's say the company next year so this is trailing 12 months earnings.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Maybe Abby made 50 and Ben earned 0.

And then about a year and a half ago,

Because when someone says earnings, are those the earnings last year?

The company's profits soared.

A looked expensive.

So now we switched places.

Let's see if we can better understand what a cash flow statement for my simplified shipping truck example company would actually look like.

I'm mainstreaming.

You went from working for the Company

There's a discrepancy in what's happening today in the emerging economies.

And the purchase order for the old 777 he bought through a shell company.

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

That means your revenue to your company would not be 100 but 90.

Again the only way to figure this out is being able to interact with tens or hundreds or thousands of customers so you finally understand what the right revenue streams and revenue model is.