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

Company A made 1 per share. 1 of EPS.

Yep, that's right.

So as you see here, if I charge 2.80 and I only sell 300,000, then this is my return on asset right here.

Net profit for the period is estimated at 5 billion yen, largely unchanged from the previous one.

So then you're having, you have your net income, your net income during the period.

And what's left over for the equity?

And then in month 4 we actually earned the revenue.

Let's say this is what we assume is how many cupcakes we sell.

Our profit here, if we just take the number that we have here,

And we'll make it more complicated in the future

This is just the money directly from the cupcakes.

Company C is trading at 100.

I put my software and IBM together

I'm going to prevent a huge amount of damage that he could cause.

So this kind of the cash income statement,

Following a joint statement by Vivendi and electricity giant VFM..

Let's see if we can use our example to understand the 3 types of income statements and hopefully understanding those income statements will also help us understand this example.

And the other reason is, this was just 2008 earnings.

So let me draw a yield curve right over here.

They're paying 400 the next month

Simply put, we hate losing what we've got.

The company incurred a deficit of 400 million during the first quarter.

As you might know, a stroke is a brain injury.

No. I want a period on this sentence.

So this right here you could view as our income statement.

How much am I making from operating the business?

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.

Or 3 is you could have found a business model but may be one that isn't an explosive growth, but you could be growing slowly and barely breaking even.

Because during conflict economic policy typically deteriorates.

People tend to place a much higher value on losses than on gains.

Money lenders are enjoying a profitable period.

But anyway, here I want to figure out what is my return on asset?

One good one makes up for all the bad ones.

So my return on asset is 7 .

let's kind of do it backwards.

One of the interesting thing about costs is that in the old days costs and revenue, the minute you started your company, your investors said oh, we know how to track all this.

So we have to figure out what's the right trade off?

Corporate earnings for the first quarter were disappointing.

Net income is also earnings.

So it will benefit, because you are discounting some of the cash payments.

Hitch your wagon to a star, hm? ( chuckles )

If I sell 1.60 per cupcake and if I sell 900,000, then I'm also at break even.

Corporate earnings in the first quarter improved sharply.

But it might be to explicitly control the yield curve further out, so that the borrowing cost for longer debt goes down, so that the yield curve looks something like that.