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Income Statement Abatement, Including the Exciting World of Valuation Ratios

Dashboard > Investment Vehicle (not the kind you drive) Characteristics, Part I > Income Statement Abatement, Including the Exciting World of Valuation Ratios

Income Statement Abatement, Including the Exciting World of Valuation Ratios

Income Statement Abatement

So, check out the performance of Facebook after the first year – here is the income statement for year one:

Year One
Revenues
Ad Units Sold (millions)350,000
Sales$1,250,000
ARPU (Average revenue per-unit)$3.57
Expenses
Engineering650,000
Serving75,000
Gross Expenses725,000
Gross Profits525,000
Gross Margin42%
Salaries425,000
Rent65,000
Legal55,000
Insurance35,000
Total overhead580,000
Operating Profits(55,000)
Taxes-
Net Profits(55,000)
Shares Outstanding
1,500,000
Profits per S...

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