Book Two, Chapter 2
The controller is the profit and loss scorekeeper for your business.
Next up. Learning how to read, interpret and write Profit and Loss Statements
We need a business model. We currently don't have one as I am just learning what that really truly is.
This book talks about a business model for a business that sells goods or merchandise. I quote:
"Your basic business model is to sell a volume of products at adequate markups over their cost to cover operating expenses so that you generate a satisfactory profit after your interest and income tax expenses. "
Ok we are more of a service based company. Really either of the trucking companies so here goes. Our basic business model is to transport goods at a rate adequate to cover the cost of transportation and other operating expenses so that we generate a satisfactory profit after our interest and income tax expenses.
Note to self. Look up and read the first age of the annual federal income tax re
turn for the businesses that have been going for more than 4 months. as this reports the p&L from that business as reported to the IRS
Operating expenses include salaries, and wages, and make up the lion's share of the operation expenses. As well we need to see advertising and other sales promotion costs.
What is the long term operation assets of Oasis? machines, trucks and equipment for instance recorded as depreciation expenses.
What items are listed in the catchall expense account? What can the new business consider as machines, equipment and trucks? What goes in that catchall account? What does not qualify?
Who has interest expense? Only S & D? as they have the loan?
Who is going to have income tax expense and who will have pass through?
Ok that is 20 pages of the next book, my eyes are foggy ad I have enough questions for the morning.. and now Good Night
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