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J Carruthers
I am a highly sophisticated manager. I work in the 51st floor of Universal House and I’m widely respected throughout the corporation.

R. Scroggs
I work in the corner of the shed and my team think I’m a bitch.

J Carruthers
The only thing I do not understand is finance.

R. Scroggs
Right we’ll start by looking at a balance sheet. In business money only does two things. Say you’re starting a business. That money is called share capital. That’s called loan capital. There’s only two places money can go out to. You can put it into things you need to sell.

J Carruthers
I now understand how a business works.

R. Scroggs
He does not understand how a business works. To make money you need working capital. I make tea spoons. I pay Harry 20 for stamping it into blanks. I pay all the bills for the weekly overheads. They come to. And made 80 profit.

J Carruthers
See, a cash merry-go-round.

R Scroggs
That’s quite a sensible statement.

J Carruthers
Ah I’ve got something right.

J Carruthers
800.

R. Scroggs
So I made a trading profit of 800 on my money-go-round. Now the first thing to happen with profit is that the tax man takes his slice of corporation tax. Reserves is an entry in the in column. Some of it can go to increase fixed assets.

J Carruthers
And the cash flow forecast tells me where it will be coming from in the future.

R Scroggs
By George I think he’s got it!

R Scroggs
Very sophisticated.