by baz » Mon Jul 02, 2012 10:34 pm
Hi David,
This takes me back to the BUG to do with cash leakage / incorrect profit thread.
The current profit indicator at the bottom of the screen should be updated in real time already.
I guess were talking about the graph that appears at the side of the yearly profit amount indicator.
If thats the case, surely the observation in the post above is correct. The profit should repersent profit of your cash. If you look back at the pictures in the above thread, there all green. If i'm losing money as suggested, then they shouldn't be green.
You were right in the post about the interest been more than my profit that I earn't from residential, but I just can't accept that you can lose money in your cash but still have profit. I did understand what you said in the previous post relating to this but it just goes against the accounts and busines and finance courses that I undertook. I do accept that my assets were appreciating but surely if your cash is been swolled up by your business, your losing money and your not making profit. As what we would be saying is for example. I buy a house for $150K, I had $100K in the bank. Out of this comes my morgage every month, say $1K. I don't recieve any income say. After 5 years my house is worth £500K but I have paid $60K in morgage fees. I would only have $40K left but my house has appreciated by $350K. Untill I sell the house I only have $40K left. I couldn't say well I have $410k to the bank. As I haven't sold the house, so If I was to look on a graph my assets would be green and high by $200K but my money would be red and show $60K loss. If sold the house, sure I would have $410K and once I sold the house and paid the morgage then have made a proft $200K and have $240K in my cash. I know business do use asset appreciation in there balance sheets but I can't believe that they would declare a company making good profit when it's using your cash to support it. But then nothing supreises me in business anymore.
Perhaps i'm wrong on this completely but what were then saying is, I can fund a company from my cash forcing me to near bankcrupcy and my business shows a profit due to the cash that it's taking from me.
I have a great remedy to this. If your cash can have a colour code to it so for example, When you are recieving lots of postive cash in your personal cash the colour turns to dark green, depending on the intersity of the cash your making, once that cash goes down to a minor amount it should be very light green. As red is used for negative cash, you could use Yellow to show that your cash is reducing in money, and again the more that intensifies the darker yellow it goes too. As soon as you hit negative cash it goes red.
I know your a busy man David, especially with the extra posts and threads I put your way

, and I'm very gratefull that you find time to answer when you can. Look forward to your reply.
Hi David,
This takes me back to the BUG to do with cash leakage / incorrect profit thread.
[quote]The current profit indicator at the bottom of the screen should be updated in real time already.[/quote]
I guess were talking about the graph that appears at the side of the yearly profit amount indicator.
If thats the case, surely the observation in the post above is correct. The profit should repersent profit of your cash. If you look back at the pictures in the above thread, there all green. If i'm losing money as suggested, then they shouldn't be green.
You were right in the post about the interest been more than my profit that I earn't from residential, but I just can't accept that you can lose money in your cash but still have profit. I did understand what you said in the previous post relating to this but it just goes against the accounts and busines and finance courses that I undertook. I do accept that my assets were appreciating but surely if your cash is been swolled up by your business, your losing money and your not making profit. As what we would be saying is for example. I buy a house for $150K, I had $100K in the bank. Out of this comes my morgage every month, say $1K. I don't recieve any income say. After 5 years my house is worth £500K but I have paid $60K in morgage fees. I would only have $40K left but my house has appreciated by $350K. Untill I sell the house I only have $40K left. I couldn't say well I have $410k to the bank. As I haven't sold the house, so If I was to look on a graph my assets would be green and high by $200K but my money would be red and show $60K loss. If sold the house, sure I would have $410K and once I sold the house and paid the morgage then have made a proft $200K and have $240K in my cash. I know business do use asset appreciation in there balance sheets but I can't believe that they would declare a company making good profit when it's using your cash to support it. But then nothing supreises me in business anymore. :)
Perhaps i'm wrong on this completely but what were then saying is, I can fund a company from my cash forcing me to near bankcrupcy and my business shows a profit due to the cash that it's taking from me.
I have a great remedy to this. If your cash can have a colour code to it so for example, When you are recieving lots of postive cash in your personal cash the colour turns to dark green, depending on the intersity of the cash your making, once that cash goes down to a minor amount it should be very light green. As red is used for negative cash, you could use Yellow to show that your cash is reducing in money, and again the more that intensifies the darker yellow it goes too. As soon as you hit negative cash it goes red.
I know your a busy man David, especially with the extra posts and threads I put your way :) , and I'm very gratefull that you find time to answer when you can. Look forward to your reply.