And so I actually raised prices.

Just because I know that these guys like me.

To figure out the cash from operations from actually how much cash the operations are producing.

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 now we are left with our we're getting close to where we need to get to pre tax income.

Our profit, once again, is 30,000.

The company went out of business after many years of declining profits.

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

Biodiesel and ethanol are made from crops grown by petroleum powered agriculture.

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

Minus 500,000.

I hate that term Voice Over Internet

Over the same span of time sales have increased by two thirds and profits have doubled.

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.

But here you see it means very, very different things.

They buy more of your service and they tell more of their friends, which leads to more profit.

Kill the goose that lays the golden eggs.

I'll just abbreviate that as Nl.

Go ahead, eat.

decreasing Y

Ink Reduction

Our interests clash with theirs.

Fair enough.

All they care about is profits.

Is it increasing by 2 or is it decreasing by 2?

Here's what you get on cortisol.

How about fitness?

No gains without pains.

I pulled my punches a little.

We know how much it takes to build our product.

And then they'll say well in the most naive interpretation of things, you net income in theory should be the cash you're getting or at least it's some type of profit you're getting assets in the door or at least you're counting as if you're getting some assets in the door.

The taxes will be 153,000.

I'm not a charity commissioner.

A benefit to both our worlds.

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

Corporations are downsizing and reducing the amount of profits they put back into R D.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

They have no interest expense, because that's not the point of this video.

No pain, no gain.

Benefits are in effect.

The people would become the defenders of that forest.

He was a good another.

Well it's decreasing.

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.