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hi my name is Justin with Justin Paul management and I'm gonna be talk with you today about understanding a profit loss statement the profit loss statement is actually referred to more commonly as the income statement or possibly a P&L and what the profit loss statement actually tells you is how a company's gross profits are transformed into net profits and gross profits are all the money that a company made throughout a year but as you know company has expenses that it takes to run the business so what you look at when you're looking at it at a profit loss is where the company spent how much money and at the bottom line if you will of the statement is the net sales and that shows you actually how much the company made the other common business statements that you would see are the balance sheet or the cash flow statement so for this example I've actually created a fictitious company called Larry's lemonade so let's look at Larry's P&L see how his company's doing and see whethe


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