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.

Cannot calculate the remainder on 0.

Remainder

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

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

Total Float

FDlC insured.

Are the profits exclusive of taxes?

And a significant minority of those 500 million people

Before Interest and Taxes.

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

Let's say this is what we assume is how many cupcakes we sell.

This can is from a surplus disposal run.

The loan bears an 8 interest.

So wait a minute, you're getting 90 but you spent a total of 53 building the product and keeping the lights on and that leaves right in the middle how much profit you have.

Either stolen or war surplus.

We shared the benefit together.

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.

My head I think implicitly made the numbers work out nicely.

We shared the profit among us all.

When we did return on asset, we looked at the operating profit, because this is what our company generated before we paid the bank or Uncle Sam or anything like that.

The fine is 500 Chatls, 250 each.

That is the resource that I'm talking about.

In the last video, I hopefully showed you that if I borrowed P dollars, and I borrow it for a year, and you were to charge me an interest rate of r, or you could say 10r , then at the end and we were to compound continuously.

So this is trailing 12 months earnings.

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

He said to his sweetie, Let us marry.

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.

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.

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.

The company announced a profit of 200 million after tax.

Total bill

I know my law. DEVLlN

That is going to increase employment.

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.

It says right on the back here,

The taxes will be 153,000.