Benefits are in effect.

Let me write that.

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.

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.

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

But in general if you take EBlT and you take out the non operating income, you get back to operating profits.

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

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

I'll just abbreviate that as Nl.

Go ahead, eat.

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

That can be generic manufacturers.

5 10 amp gt amp gt Narrator

Our interests clash with theirs.

Anything you say can and will be used against you in a court of law.

That is a human tragedy.

I do want to leave you with one positive thought.

So this is trailing 12 months earnings.

Kill the goose that lays the golden eggs.

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

Don't ask any questions that would portray us negatively.

We found the missing hospital bus.

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

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

Nonexplosive.

But very, very few people or organizations know why they do what they do.

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.

I was in Southern California

Audio by Bob Hates Frank

We're only talking about a small amount that's missing...

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

Now we can do another notion, and that's return on equity.

But you can see there's a problem here.

Before Interest and Taxes.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

This is 350,000 of net income.