As a matter of fact, you did a pretty large catering.

You could even say it's a cash advance from customers.

So a plus b have to be equal to 50.

What does that tell us?

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

Profitable.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

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

The reason why you are willing to pay a higher Price to

Everything on this line would be a valid combination of

We learned that in our first video.

The price here, Company B was more.

And the first one is that this whole idea about revenue stream, Steve, I get it.

Let's compare EBlT to operating profit.

We talked about the potential ways to charge

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

So notice.

Invest financial assistance, but also management assistance.

What's more, we abstract repeat patterns and recognize them.

That's day 0.

It's just 10 because one, this is a nice round number.

It's the same plot.

When? I said it's time to monetise the site.

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

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

Instead of Z, we're going to make a measurement vector called measurements.

And we add back the interest, at least in this example, we get to an operating profit number.

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

That was a bit of a diversion.

And the first thing we need to figure out is, what is our revenue model.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

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

And, as he picks up a product, the system can recognize the product that he's picking up, using either image recognition or marker technology, and give him the green light or an orange light.

So now we add an interesting line.

The first thing you have to figure out is what's the revenue stream

But I just want to give you the gist of what's happening.

The dog tags. Come on!

So in 2013 you'll be making 16.

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

Confirm acquisition. CAPTAIN Ooh!

But today we re going to be talking about revenue streams.

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