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Sorry about the misunderstanding, yes, at the end of 2008 we donated $15,000 of LOLmagnetz sales to the SF/SPCA (keeping the other $15,000 to cover cost of inve

Sorry about the misunderstanding, yes, at the end of 2008 we donated $15,000 of LOLmagnetz sales to the SF/SPCA (keeping the other $15,000 to cover cost of inventory. At the end of 2009, we donated $22,000 to the SF/SPCA to cover the $15,000 we 'owed' along with some more gravy gained from LOLsales during the year. Breadpig is indeed a for-profit corporation (for reasons best left to another post) but I'd like to be more transparent about this to the point of real-time reporting. I'll publish our financial statements as soon as our accountant is done with them. edit: account->accountant

bricestacey 17y ago
I still don't think the sentence adds up. $30,000 profits which require "$15,000 to cover cost of inventory" is not really $30,000 profit. That'd be revenue, right? As the reader, I'm left figuring out which part is wrong and it looks good or bad depending on which way I choose...
- albertsun 17y ago
  It reads as cost of future inventory to me. The $15,000 was kept to cover the cost of printing of more inventory to sell.
- kn0thing 17y ago
  Ah, I see, I counted it as 'profits' in 2008 because it wasn't a cost until 2009 (when we put a downpayment on the books).
- lambda 17y ago
  OK, say it costs $5000 up front to do the initial print run. Then you earn $35,000 in revenues, leading to $30,000 in profit. You could simply pay out the $30,000 to the charity you provide the profit to, and end there. Or, you could pay $15,000 to the charity, and use the rest of the money as an investment in a future print run, allowing you to then later donate $22,000 to the charity. Many of the profits that a corporation makes aren't directly paid back to the stockholder in the form of dividends. Instead, the company keeps the cash on hand, essentially investing it in itself, in order to use it to create larger profits later. That's the way I read it anyhow. I could be wrong.

bricestacey 17y ago

I still don't think the sentence adds up. $30,000 profits which require "$15,000 to cover cost of inventory" is not really $30,000 profit. That'd be revenue, right? As the reader, I'm left figuring out which part is wrong and it looks good or bad depending on which way I choose...

albertsun 17y ago
It reads as cost of future inventory to me. The $15,000 was kept to cover the cost of printing of more inventory to sell.
kn0thing 17y ago
Ah, I see, I counted it as 'profits' in 2008 because it wasn't a cost until 2009 (when we put a downpayment on the books).
lambda 17y ago
OK, say it costs $5000 up front to do the initial print run. Then you earn $35,000 in revenues, leading to $30,000 in profit. You could simply pay out the $30,000 to the charity you provide the profit to, and end there. Or, you could pay $15,000 to the charity, and use the rest of the money as an investment in a future print run, allowing you to then later donate $22,000 to the charity. Many of the profits that a corporation makes aren't directly paid back to the stockholder in the form of dividends. Instead, the company keeps the cash on hand, essentially investing it in itself, in order to use it to create larger profits later. That's the way I read it anyhow. I could be wrong.