Good morning all. well a massive increase in profit was an...

Good morning all.

well a massive increase in profit was an unexpected surprise. I’m sitting on the beach at Fraser Island so a detailed analysis will have to wait until next week.

strike a light matchbox you will get seriously burnt playing this game unless you get up to speed on the relationship between the balance sheet and the profit and loss account. revenues and expenses that are in the balance sheet aren’t in the P&L account.

its pretty simple the p and l tells us what was sold in the current period and how much was spent producing and selling it and running the company.

revenues and expenses that don’t relate to what was sold during the current are reported in the balance sheet and serve to increase or decrease assets and liabilities.