Need advice for an automatic bike

[xm911e3]

Hi guys, would greatly appreciate if someone here can show me the light. Long story short it's about balancing the checking account and net profits.

From what I know "Money In & Money Out" the amount left over is the net profit that goes into your pocket. Simple eh... however it seems confusing to me because in my business I've to put away some money into my checking account for purchase of stocks for the next coming month.

Question 1) For example every month, my total revenues is 100,000B. 30% of this 100,000B (30,000B) will go into my checking account. Is my net profit 70,000B?

Question 2) Every month, this 30,000B in my checking account will be use to purchase stocks and normally end of the month, there will be 5,000B left over. Left over 5,000B consider as???

Any simple and easy way to calculate my real net profit? Please help!!!

Thanks alot in advance.

Edited May 6, 2010 by xm911e3

[Amerifarang]

Your net profit is what you have left after deducting your wages and those of your employees,this includes the cost of any benifits you give yourself or them. Then you deduct the cost of what goes into product you're selling,plus any expenses that you have,rent,gas, transportation etc. After all that=Net Profit

[xm911e3]

Your net profit is what you have left after deducting your wages and those of your employees,this includes the cost of any benifits you give yourself or them. Then you deduct the cost of what goes into product you're selling,plus any expenses that you have,rent,gas, transportation etc. After all that=Net Profit

For example, every month, my revenues is 100,000B and 30% (30,000B) will go into my checking account.

Revenues: 100,000B

Checking Account: 30,000B

- Stocks

- All overheads

- Salaries

- Benefits

- Etc

Let's say after paying for the stocks, overheads, salaries, benefits, etc.... the account left 5,000B... Which means I spent 25,000B in my checking account for business expenses.

Note that this 30% (30,000B) dos not goes into my pocket every month. 100,000B - 30,000B = 70,000B (Goes into my pocket).

Can I say what goes into my pocket every month is my net profit?

[xm911e3]

As for the 30,000B in checking account, all money will only go out from this account so any money that goes out are accompanied by receipts.

End of the month, the total receipts adds up and give me a total of my sending say 25,000B.