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How to deal with lecturers that cannot accept that they are wrong? (5 Viewers)
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fortune_cookie
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I still don't get the point of posting that.
fortune_cookie
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It doesn't even mention the word "tax" in that article you newb. You haven't pointed out anything.Just wanted to point out that not everyone assumes that profit is 'after-tax' like you say?!
What do you think that net profit is then?? The article talks about profit, cash-profit and net-profit (after tax) so how can you say profit is 'always' after tax?
WilliamWu123 is right, maybe you should spend more time
for the end of session quiz?fortune_cookie
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Look, I have just taken a real world example. Check the following links.
News article about McDonalds Corp 2009 Results: http://news.medill.northwestern.edu/chicago/news.aspx?id=154432
McDonalds Corp 2009 Annual Report: http://www.aboutmcdonalds.com/conte.../C-\fakepath\investors-2009-annual-report.pdf
Check the first line of the third paragraph in the news article. "Earnings for the full year ended Dec. 31, 2009 were $4.5 billion"
Now, look at Pg 28 "Net Income" in the Consolidated Income Statement in the annual report. Look at the 2009 figure. Surprise surprise, it is 4551million (4.551billion).
Therefore, they quote after tax profits in the news.
News article about McDonalds Corp 2009 Results: http://news.medill.northwestern.edu/chicago/news.aspx?id=154432
McDonalds Corp 2009 Annual Report: http://www.aboutmcdonalds.com/conte.../C-\fakepath\investors-2009-annual-report.pdf
Check the first line of the third paragraph in the news article. "Earnings for the full year ended Dec. 31, 2009 were $4.5 billion"
Now, look at Pg 28 "Net Income" in the Consolidated Income Statement in the annual report. Look at the 2009 figure. Surprise surprise, it is 4551million (4.551billion).
Therefore, they quote after tax profits in the news.
Yes - but that is earnings..... earnings / net income are not necessarily the same as profits!?!?
Maybe you should do ACCT1501?!
Surely the fact that we are both able to provide examples shows that you were wrong to make that assumption? 'Always' is a strong word.....
Maybe you should do ACCT1501?!
Surely the fact that we are both able to provide examples shows that you were wrong to make that assumption? 'Always' is a strong word.....
fortune_cookie
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God you are stupid :|Yes - but that is earnings..... earnings / net income are not necessarily the same as profits!?!?
Maybe you should do ACCT1501?!
Surely the fact that we are both able to provide examples shows that you were wrong to make that assumption? 'Always' is a strong word.....
I have taken first year accounting, and I ripped it up with HDs.
Earnings/Profit/Income are all the same things. They are different words with the same meaning.
Look at the before tax figure:
Income from continuing operations before provision for income taxes 6,487.0
Look at the after tax figure:
Net income $ 4,551.0
hmmm, what is the figure mentioned in the article most likely going to be?
Also remember that they round profit down, not up. General rule of accounting , better to understate profit than overstate profit.
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Yes - but the SMH article reports Profit in the headline, and Net Profit in the story (Net Profit is profit AFTER tax - see the definition in Wikipedia if you don't believe me). So that must mean that the profit in the headline is BEFORE tax.
Now who's stupid?
Now who's stupid?
fortune_cookie
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You?Yes - but the SMH article reports Profit in the headline, and Net Profit in the story (Net Profit is profit AFTER tax - see the definition in Wikipedia if you don't believe me). So that must mean that the profit in the headline is BEFORE tax.
Now who's stupid?
No point in arguing with person....
Maybe you got title of thread wrong.
fortune_cookie
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The reason why they don't say "Net Profit" in the title is just basic english. It doesn't make the headline sound good. It is too much of a mouthful and it is not short, snappy and attention grabbing.
Maybe you didn't read the SMH article - the profit in title/headline is $2.83bn, the net-profit referred to in article is $2.05bn. Some difference, and not rounding down.....
Maybe you misread quiz question too?
op i also am doing fins1612 and i understand your problem, i do agree it is vague and ambiguous about whether it was post or pre tax, they should of used ebit , but profit doesnt mean that it was post tax because it could be gross profit which is before tax. also if u do look at other questions i think all of them give the pre tax profit i have never seen a question that is post tax, it is an unfortunate circumstance but u are wrong because u made the assumption it was post tax, also it doesnt help u that it was multiple choice because it could be argued that if u were not sure u should of done it both ways and u would of gotten a correct answer out of 1 of them.
fortune_cookie
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Nah, I am right. Even 'mash121' agrees with me.Maybe fortune cookie will accept he / she is wrong?!?
Shouldn't hold breath waiting....
He sympathizes with your issue but ultimately says your wrong and that you should have done your due diligence.
Delusional....
Since I now live in a democratic country, maybe I can put this to the vote. Who is stupid:
a) Someone who ignores the example we covered in tutorial, assumes that profit is 'always' after tax, does calculation, and then just guesses at answer (incorrectly I presume) when the calculated answer does not equate to one of the multiple choice answers? (i.e. Fortune Cookie)
b) Person who realises that the profit figure is before tax (or at least there is a good chance that it is), then uses the data in the question to perform a very simple calculation to achieve one of the 4 multiple choice answers?