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332 – Profit and Loss


Dolores: Manuel in accounting is supposed to help me with this report, but he called in sick today! I can’t believe my luck. He’s supposed to be training me in and he’s left me holding the bag.

Anton: Let me see if I can help.

Dolores: I’m supposed to use the information from this profit and loss statement to make some projections about the company’s future performance for our report, but I’m not sure what I’m doing. I need to plug in some numbers here, but I can’t make heads or tails of this.

Anton: Well, if you look at the top of the statement, you’ll see the top line, which shows the revenue the company brought in in the third quarter of this year. Is that what you need?

Dolores: Yes, I think so, but I also need to know our net income.

Anton: Here is the bottom line. That takes into account all of the revenue and expenses during the third quarter.

Dolores: That’s great, but I also need to know the gross profits and operating expenses.

Anton: Those are in this column. See?

Dolores: I guess all the information is here. I just needed to know where to look. Thanks. I couldn’t have figured it out without you.

Anton: It’s not that complicated. Hopefully, Manuel will be back tomorrow.

Dolores: Manuel? Who needs him!

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