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Morning Consolidation

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17. Re: Morning Consolidation May 10, 2012, 14:43 Yosemite Sam
 
Agent.X7 wrote on May 10, 2012, 12:07:
InBlack wrote on May 10, 2012, 10:26:
What the fuck? Is it just me or are these numbers that these big corporations throw around waaay out of proportion.

How the fuck can anyone lose 2.8 Billion dollars and not go bankrupt RIGHT IN THAT FUCKING SECOND???

Price cuts? Really? Price cuts are to blame? So why did they fucking CUT THE PRICE then?

Remember, this is a business. Businesses do not account for money in the same way real people do. Some businesses post loses every year, and yet they are still around after decades. It's because a loss isn't really what it sounds like. Accounting magic.

Sales - Cost of goods sold = Gross profit
Gross profit - expenses = net profit

Always remember that ANY money the company spends is an expense. Hence, if you sell $1 million in product and it cost you $500k to produce, you have a net profit of $500,000. Your rent, utilities, etc all come to $250K, so you have $250k left, right? Now, pay employees, bonuses, and expense anything that doesn't really have to do with making the product but you can get away with it because the tax system is wacked. Now that remaining $250k is gone, plus another $30k in write offs.

Now you post a $30k loss and avoid paying any taxes because - after all - you didn't make any profit, right?

Don't forget Sony is a huge company that owns many divisions. If they come close to posting a profit they pay another division an obscene amount of money to expense it, and then post a loss to avoid taxes.

Yup and don't forget Sony got hacked last year too, a lot of downtime and I'm sure they calculated how much money was lost to lost sales while the system was down. Then they gave away those 4 free games to everyone, gotta caculate the cost of giving away each individual game, then they gave everyone a free month of plus, hey thats lost revenue too! As for TVs, market got flooded with them, prices tanked, I'm sure ALL TV manufacturers took a hit.
 
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Previous Post Next Post Reply Quote Edit Delete Report
 
    Date Subject Author
  1. May 10, 10:26 Re: Morning Consolidation InBlack
  2. May 10, 10:47  Re: Morning Consolidation Malachii
  3. May 10, 10:54   Re: Morning Consolidation nin
  4. May 10, 10:56    Re: Morning Consolidation Creston
  18. May 10, 16:09    Re: Morning Consolidation Darks
  7. May 10, 10:58   Re: Morning Consolidation killer_roach
  13. May 10, 12:07  Re: Morning Consolidation Agent.X7
  14. May 10, 12:15   Re: Morning Consolidation PHJF
  15. May 10, 13:55    I AM THAT I AM space captain
  16. May 10, 14:29   Re: Morning Consolidation Quboid
>> 17. May 10, 14:43   Re: Morning Consolidation Yosemite Sam
  23. May 10, 18:30  Re: Morning Consolidation Prez
  5. May 10, 10:57 Re: Morning Consolidation Verno
  6. May 10, 10:57 Re: Morning Consolidation Creston
  8. May 10, 11:03 Re: Morning Consolidation Verno
  9. May 10, 11:13  Re: Morning Consolidation ASeven
  10. May 10, 11:25  Re: Morning Consolidation Jivaro
  11. May 10, 11:47   Re: Morning Consolidation space captain
  19. May 10, 16:20    Re: Morning Consolidation Jivaro
  20. May 10, 16:38     Re: Morning Consolidation space captain
  21. May 10, 18:12      Re: Morning Consolidation Jivaro
  26. May 10, 19:54      Re: Morning Consolidation Flatline
  27. May 10, 20:11       Re: Morning Consolidation Prez
  28. May 10, 22:13      Re: Morning Consolidation Quboid
  29. May 10, 23:10       Re: Morning Consolidation Rigs
  31. May 10, 23:46        Re: Morning Consolidation Mordecai Walfish
  32. May 11, 00:03         Re: Morning Consolidation PHJF
  33. May 11, 05:46          Re: Morning Consolidation Fantaz
  22. May 10, 18:17     Re: Morning Consolidation Dades
  24. May 10, 18:33      Re: Morning Consolidation Jivaro
  25. May 10, 19:11       Re: Morning Consolidation Lorcin
  12. May 10, 11:53 Re: Morning Consolidation Verno
  30. May 10, 23:44 Re: Morning Consolidation mag
  34. May 11, 10:20 Re: Morning Consolidation Verno
  35. May 11, 12:05  Re: Morning Consolidation Jivaro
  36. May 11, 12:11   Re: Morning Consolidation nin
  37. May 11, 14:07   Re: Morning Consolidation Verno
  38. May 11, 14:36 Re: Morning Consolidation Jivaro
  39. May 11, 14:56 Re: Morning Consolidation Verno


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