Checking Account & Net Profit Confusion

Playstation 2 SG

Hi guys, would greatly appreciate if someone here can show me the light. Long story short it's about balancing the checking account and net profits. From what I know "Money In & Money Out" the amount left over is the net profit that goes into your pocket. Simple eh...

However it seems confusing to me because in my business I've to put away about 30% of my revenues every month into my checking account for purchase of stocks, pay salaries, business expenses (SG&A) for the next coming month.

Question 1) For example every month, my total revenues is $1,000. 30% ($300) will go into my checking account. Is my net profit $700? ($700 goes into my pocket every month after paying for all business expenses)

Question 2) Every month, this $300 in my checking account will be use to purchase stocks, pay salaries, business expenses (SG&A) and normally end of the month, there will be $50 left over. Left over $50 consider as???

Any simple and easy way to calculate my real net profit? Please help!!!

Thanks alot in advance.

TYING SG

if base on qn 1, after paying all your business expenses, that would be your net profit. For qn2, the 50bucks is your leftover provision for expenses that you have provided.

Easy way to calculate: Revenue - Expenses = Profit/ Loss

angel7030 SG

if $700 goes into your pocket, that is net profit, any expenses left from the $300 is called surplus, that is yr $50 if you have budgeted $300 as expenses. And surplus can be taken as productivity gain. As you control your budget, this gain will increase.

angel7030 SG

anyway, why dun go back and play PS2 and forget all about this...