Monday, April 06, 2015

Can you answer this question about profits?

Assuming that a company operates 365 days a year, here’s a question about profits: How many days of sales in a calendar year does it take to cover all of a company’s annual expenses (labor, rent, cost of goods, utilities, property taxes, income taxes, interest payments, advertising, etc.), and then how many days of sales would represent the company’s profits?

ANSWER: The typical US firm doesn’t earn a profit until sometime in December, and often it’s the end of the month

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