There is no doubt about what they have done.

Utilities are still rewarded when their customers waste energy.

That's kind of a lot of money

Pearl Jam, 96 albums released in the last two years.

last year, they made profits of over 700 million dollars and over 500 million dollars respectively.

Minus 50,000.

And so you're almost ready.

If I could borrow some of their money and use it to pay people that will essentially do the goods and service or do the new project, then I'll generate wealth.

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

Minus 500,000.

You'll get your cut.

I'm going to take the cost of what it takes me to build the product, and I'm going to add some fixed markup whatever I think my profit should be.

And maybe most important, they have a big effect on other companies.

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

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.

Because if you're at full capacity, and we saw that in the last video, when it was just me,

And, they could actually push off that utilization and get more profit, by maybe raising prices.

And even if they all kind of know that things are a little bit too expensive.

Why isn't it on every poster across the third world?

And we had no expenses in that month.

His company makes profits from car exports.

The company earned 300 million on sales of 4,000 million.

Unfortunately, I personally do not believe in the Marshall Plan.

And I'll write it as a negative number because we're going to subtract it from the gross profit.

So EBlT, I kind of view that it goes backwards.

And we helped him build a company, for profit, that would build on IDE's knowledge, and start looking at sales and exports, and be able to tap into other kinds of capital.

And I think that the companies, organizations that are flourishing, whether they're profit, for profit, or somewhere in between, are animated by this purpose.

Fair enough.

It's good for everybody.

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 then I'll do a more philosophical video on why these things even exist, and why they're useful, and why people may benefit or may not benefit from these things.

With trade, there's mutual interdependency and mutual gain between parties.

War does have its benefits...

So most cash flow statements, they'll start so I'm going to do a cash flow statement right over here

Cash is a asset because you can use it to buy stuff and get people to do stuff for you

And this is the profit from the operations of the company, or you could say from the assets or from the business or from the enterprise of the company.

But for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.

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

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

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.

Now, the CEO of Goldman Sachs Lloyd Blankfein is hailed as maybe the greatest genius since Einstein.

We know how much it takes to build our product.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

Mom and pop stores will turn a profit in the new fiscal year.