It brought me entertainment and I stayed to take my profits.

So, let's see, you have to do 1.85.

And now we're ready to figure out how much money did the operations of this business make?

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

I wouldn't give up, I would just be going back and looking at the customer segments you are targeting and understand whether you want to build the business or have a hobby.

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.

That's less than 10 of what I booked for you guys this quarter.

Minus 500,000.

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 mean, who owns the electricity from those panels for the longer term?

I'll just abbreviate that as Nl.

Closed systems, corporations, make a lot of money on the open web, and they're one of the reasons why the open web lives is that corporations have a vested interest in the openness of the system.

Go ahead, eat.

Our interests clash with theirs.

Fair enough.

All they care about is profits.

I do want to leave you with one positive thought.

So this is trailing 12 months earnings.

We'll see how to use cryptography to manage passwords, and user accounts.

No gains without pains.

We know how much it takes to build our product.

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

And I won't go into all of the details of an income statement, but any income statement you look at will have this operating profit line.

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.

And so I actually raised prices.

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.

And that's what these brands did.

FDlC insured.

And that's my dad found that.

The rewards would be... enormous.

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?

And let's say, assume if I inherited this million dollars, I didn't finance it.