Are You Showing a Profit Yet
I am NOT an accountant but I do know when your income is larger than your expenses, you are in profit!
In business as in life, NOTHING IS THAT SIMPLE!
I had a Calculus teacher in High School show us that 2+2=5 It took him a while (an entire class period) but when he was finished, he proved it! Between that example and the Photography example, I use those to prove …..
Ok, this is not accounting 101 and that’s why I call it Accounting 109. You don’t need an accountant to know if you are in profit (only to help you pay your taxes). With our business here at Compumatrix, we are dealing with our product Compuceeds (our Digital Currency). (For more information, I will refer you to Compuceeds or Bust. )
In our business, we are in the process of setting up our store (example). We are stocking the shelves with VPCs (Virtual Prepaid Cards). We have 4 denominations:
DIAMOND – 500 COMPUCEEDS
RUBY – 100 COMPUCEEDS
GOLD – 50 COMPUCEEDS
SILVER – 10 COMPUCEEDS
Here is an example of a transaction that may occur for one of our members that is busy stocking their shelves with inventory:
They purchase a Diamond Card in the Portal and pay for it from their Cryptoceed Account. They now have an account balance of 500 Euros (and DO NOT ask how we got to 500 euros from the Cryptoceed account. That is in another story!) With the 500 Euros, they stock their inventory with 1 Diamond card (300 Euros), 2 Ruby Cards (60 Euros each= 120 Euros), 2 Gold Cards (30 Euros each= 60 Euros) and 3 Silver Cards (6 Euros each= 18 Euros) with 2 Euros remaining in your account balance.
Here is how your unsold inventory will look:
1 Diamond= 500 Euros
2 Ruby= 200 Euros
2 Gold= 100 Euros
3 Silver= 30 Euros
TOTAL VALUE OF UNSOLD INVENTORY= 830 EUROS
(Once your inventory is sold, you will have a profit of 330 Euros) (+ the 2 Euros in your account)
What if (I use to do this to my dad when I was a kid) what if you only placed one item in inventory and it sold? Would you be in profit?
Let’s say you purchased a Diamond Card with your Cryptoceed Account. Your account balance would show 500 Euros. Then you stock your inventory with just one Diamond Card spending 300 Euros. When it sells, did you make a profit? YES!
In this case, your expenses were 500 Euro. When you stocked the Diamond Card (that cost you 300 Euros to produce), you are paid 300 Euros to your account balance and 100 Euros to your earnings. Now, your account balance is back up to 500 Euros and with the 100 Euros you have in Earnings, your total is 600 Euros (100 EURO PROFIT)