O'Reilly logo

Financial Statements by Thomas Ittelson

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 11. Growth, Profit and Return

With these transactions we will fast-forward through the rest of Apple-Seed’s first year in business. We will determine our profit for the year, compute the income taxes we owe, declare a dividend and issue our first Annual Report to Shareholders.

Taxes and dividends—one bad, one good? Actually, without taxes, there would be no dividends. Dividends are paid out of retained earnings. If the business has earnings (and can thus pay dividends), then it will have to pay taxes. Taxes with earnings; no taxes with no earnings. No earnings, then no dividends. Thus, no taxes, no dividends.

But enough of this. Some really exciting events are taking place at our now not-so-little company. We have attracted the attention ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required