1. 1-800-525-1009 1/37 Business Networks $100 Dollar Exercise on Profitability By Les Cunningham CGC, CR*, CCR, CGR* http://www.businessnetworks.com *A NARI Certification 1800-525-1009 1800-525-1009

2. 1-800-525-1009 2/37 Business Networks Beliefs n BN believes that the ownership of the company should receive 10% of gross sales before taxes. n BN also believes that the shareholders of the company should receive 10% of gross sales before taxes

3. 1-800-525-1009 3/37 You Star With $100 n 83 One Dollar Bills = $83 n A Roll of Quarters = $10 n A Roll of Dimes = $5 n A Roll of Nickels = $2

4. 1-800-525-1009 4/37 Income Statement

5. 1-800-525-1009 5/37 Accountant/Bookkeeper n The Accountant/Bookkeeper will reads the percents starting with number 5 ending with 57.

6. 1-800-525-1009 6/37 n The Biggest Doubting Thomas in the Company takes money by percent as read to them and puts it in the trash. (i.e. line item 5 is 17%. They would take seventeen dollars and throw it in the trash can.)

7. 1-800-525-1009 7/37 Discussion n Why is there a lack of profitability, and critical need for the company to develop a correct net profit.