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>A lot of movie productions infamously do not have positive cash flow. You're confusing cash flow with declared income/loss. The shenanigans pulled on shows l
by masonic 4y ago
>A lot of movie productions infamously do not have positive cash flow.
You're confusing cash flow with declared income/loss. The shenanigans pulled on shows like "Columbo" and "The Rockford Files", resulted in high-quality, long-successful shows showing "losses" by the studio, are classic examples. Search on "Hollywood Accounting."
- chrischen 4y agoCorporations do the same thing via end of year bonuses and dividends. Those things are considered expenses too and can be used to offset income. If Uber is going to get taxed 20% on their excess income for the year or they can give out some bonuses to their employees, incentive bonuses to their drivers, and ramp up their marketing spend, what do you think they'll do? You can't just declare 0 income. You have to actually spend it to declare 0 income.
- simonjgreen 4y agoMinor note that dividends are below the net profit line. You can't pay a dividend without profit.