We do not release vehicles until all impound fees are paid.

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

let's do it on an accrual basis.

But when you look at the Accrual basis it actually reflected what happened.

So a plus b have to be equal to 50.

In this case, we use last year's earnings.

Profitable.

And that month, we said we had 400 of revenue, 200 of expense, 400 minus 200 gives us 200 of income.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

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

So in month 4, we can actually put it in our income statement at 200, and then we had 100 of expenses, so that we have this 100 right over here.

Are you using the past 12 months earnings?

Everything on this line would be a valid combination of

One is, you could kind of flip this.

Are you using future earnings?

Let's compare EBlT to operating profit.

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

So notice.

Invest financial assistance, but also management assistance.

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

What does that tell us?

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.

GDP Household expenditures which was Firm revenues which was Firm expenses profit which is household income (I'll just write Inc. for Income) and of course household income is then (or at least in this case it ended up being equal to) household expenses.

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

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.

They acquire a library of intellectual property rights, then litigate to earn profits.

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

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

last year we earned about 20 odd million dollars, spent about 13 million, with over a 40 percent EBlTA.

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

A pivot would be a change of Gee, our pricing is going from freemium to subscription.

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

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

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

So now we add an interesting line.

We learned that in our first video.

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

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

Abby earned 10 more than Ben.