But when you lower the Price to Earnings you are increasing the Earnings to Price.

And so you're almost ready.

At any given price point, higher quantity demanded.

But for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.

It is a cost effective approach.

Maybe Abby made 50 and Ben earned 0.

So a plus b have to be equal to 50.

And two dollars profit per entrepreneur per day, which is like 700 dollars per year. And of course, it's very beneficial in a lot of ways.

let's do it on an accrual basis.

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

Well, look at some old ways, some ways that we'd already cracked.

Profitable.

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

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

So a lot of people immediately will figure out the Price to

Anyway, going back to Price to Earnings, we calculated the

Invest financial assistance, but also management assistance.

But what happened here?

So let's say the revenue or the sales in this case in a given period, let's say that this is an income statement for 2008.

Movie theaters are losing more and more revenue due to internet piracy.

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

One is, you could kind of flip this.

And we can eyeball it right here.

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

At the end of the month we count your clicks

This is Earnings Per Share, not total earnings.

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

Where they start to diverge is below that line.

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

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

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

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

So now we add an interesting line.

If we look at the returns to labor, in other words total wages paid out in the economy, we see them at an all time low and heading very quickly in the opposite direction.

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

So, a mass of new discoveries.

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

Now Coke has a very clear bottom line they report to a set of shareholders, they have to turn a profit.

And most of the time, there's no backup for the reported revenues at all.

Are you using the past 12 months earnings?

And that's because they have the same exact asset.

They are now no longer concerned about the fed fund rate, because it's already at zero.

In proportion as the sales increase, the profit will rise.

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

So notice.