So we said this is 2008 earnings.

And notice in both cases, and it's usually the case it's going to be a different number than the book value the number that's actually on the books

And in the case of Jason's business

The company closes its books at the end of March.

So right now, Statler Toyota is making the best deals of the year on all 1985model Toyotas.

If you go back and look at the scatter plot, you sort of see how we would get that value.

Now, that's great, except we had him at age 44.

And the income statement is one of the three financial statements that you'll look at when you look at a company.

I think it was 2008.

This lesson is in arithmetic.

To find this out, we sort the list.

I think he's supposed to discuss the balance sheet with the committee.

Next Document

Your top priority's going to be your parentheses, after that you're going to have your exponents, after that you have multiplying and dividing, and after that you have addition and subtraction.

What we did in the first video on this series is we just did one snapshot of the income statement.

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Spread Sheet Document...

Recalculate Document

So in this period, I made 350,000.

It's the top line of the income statement.

Next year

I'll just write mult short for multiplication.

That's this thing in green right there.

Computing next move.

layer two, layer three and so on up to the final

So that D equals B time

So you don't really have to worry about it for this video.

So hopefully this gives you a idea of why accrual gives a better picture of what's happening in a buisness.

And we know that twenty five times two is fifty anyway.

And obviously, a company that has no debt will have no interest expense, but in this case, we do.

So I give it a half each time so that the total number works out.

Scroll forward to the next year

Here you are again.

Sir, the annual reconnaissance...

And what I'm going to do is I'm going to actually write out its income statement over a given number of years.

We have a veterinary facility in our rescue centers.

How much are you worth at any one moment?

Year Format

On a 12 year sentence?

And actually, in this video, we're going to see how the income statement relates to the balance sheet.

(We've got that 4 right over here.)

Stick a zero here.

I hate to leave you. It's hard. I envy you.

Well, we can do it this year.

So let's say it's 3 million.