Cheers.......

So......

Hope its quite explanatory.

Money comes in from equity, loans and income and goes out from expenditure, interest, tax, principal repayment and distribution to shareholders.

Operating profit is Earned Income - Expenditure required to earn that income.

Hence we can easily make operating profit require increased debt.

Posted By: Johnny Comecardiff on May 29th 2008 at 13:15:13

Message Thread

JCC's accountancy diagram (General Chat) - Arizona Bay, May 29, 13:10:49
- Cheers....... (General Chat) - Johnny Comecardiff, May 29, 13:15:13
- I recognise that triangle (General Chat) - pants, May 29, 13:14:05
  - Yes it's the pyramid of purpose (n/m) (General Chat) - LincolnshireCanary, May 29, 13:16:12
    - Yeah..... (General Chat) - Johnny Comecardiff, May 29, 13:16:56
- ahhh, int that nice, did he draw it himself? (General Chat) - blindasabat, May 29, 13:13:36
  - No, bor........ (General Chat) - Johnny Comecardiff, May 29, 13:15:36
    - OU? Thought I recognised the font... *shudder... dark days...* (n/m) (General Chat) - Yellalee, May 29, 13:18:02
      - Yes, bor...... (n/m) (General Chat) - Johnny Comecardiff, May 29, 13:20:55
    - are you Frank Wood? (General Chat) - blindasabat, May 29, 13:17:45

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