Resolved: net income part video
video starting from 3:16 (net income part)
not getting the logic ?
we are making it to zero ?
and at time 3:48 why all cells are not zero.?
plz explain this part to understand it clearly with examples
Hi Manish,
Good to hear from you.
I have provided answers regarding this lecture many times. Please enter the lesson and take a look at the other questions that have been asked by users. This has been explained properly. If you still struggle to understand, I will be happy to elaborate on your doubts.
Best,
Ned
hi ned.
so sorry to disturb u,i have try looking into the the past questions for this topics and even tried again.
to get the solution.
but unable to get the logic.
plz help
i understood that why we mentioned the negative sign in from of sumif function.
bcoz in the source sheet ,revenue was shown in negative .
therefore to bring it in positive ,we had put - sign in front of formula.
now after this we have to check that what we have filled in the database.it is correct or not ?
=> for this confirmation we are looking into net income,and you told it should be zero.
But net income =( sum of all items),then why we want it to be zero ?
=> therefore you are changing the signs in the colum 60 & 94.
this last 2 lines are not getting inyto my mind .
I did n't find the answer too i have read all the questions and thereis no answer regarding why the sum of coulms should be quals zero
Understanding the rest topics apart this.
"why the sum of coulms should be quals zero❓"
Hello all,
Typically A P&L looks in the following way:
Revenue - Cost of goods sold - Operating expenses - Depreciation and Amortization - Interest expense - Taxes = Net Income
In this case we have all P&L items in a given column and we also have Net income in that same column.
So, if we simply calculate, we obtain 0:
Revenue - Cost of goods sold - Operating expenses - Depreciation and Amortization - Interest expense - Taxes - Net income = 0
Hope this helps?
Best,
Ned