– Those numbers can be tricky
…Do you want some help?
– For me, ratios and percentages cause nothing but headache and confusion
– That’s tough but I’ve done this a few times before
– If you like you can double check all of my calculations
– Well, ok. I’d better take a look because I don’t want to make any mistakes and waste time on this
– Plus, I want to have a better understanding of all the costs involved
– Ok. Take a look at what I have, if you have any questions or comments, please feel free to ask
– Ok. Thanks
– Hey James, I have a question for you
…You’ve entered the legal charge under the fixed cost heading
– Yes, so I have
– Are you sure that’s correct?
– Shouldn’t that be a variable cost?
– Technically speaking, yes it should be variable cost
– Would you like to explain it to me?
– You may not agree
– Well, I don’t care
– I want you to explain it
– This is important
– Ok. By entering certain charges as fixed costs which are supposed to be variable costs, then we can make a bigger deduction in our income tax statements for the first year
– Wait a minute. Is this legal?
– Strictly speaking, no, this is not legal
– What? Should I remind you we’re businessmen, and not politicians
– We should be doing everything by the book
– We aren’t actually breaking any laws
– All I did was just follow common accounting practices
– Everybody does this this way
– James, I’m not sure I like the sound of this