CALCULATE PROFIT/LOSS

[Tree]

This is really a basic math question but I thought Excel was the Math Wizard
(more so than me) and could help, but this has opened up a bit of can of
worms in our office and would like some other input.
If we had a net loss the previous month of $-31,000 and this month we show a
net gain of $51,000.. what is the difference and is it a gain or loss? I say
that you take the negative $31000 and add it to the $51000 by that very
simple formula in Excel and you end up with a net gain between the 2 months
of $20,000... however, the others in my office are saying that you really end
up with $82,000... which means that you would have to take that negative
-31000 and subtract the 51000 in excel.. and then it's a negative (loss) of
the $82000... that doesn't seem right when you did end up this month with a
gain..
thanks for the help..

 

[Tree]

I should define this a bit better I guess.. the number represents the
forecasted profit/loss at Dec 09 and the the $-31000 was what we were showing
that would be last month when we did the forecast and then this month, due to
changes in projects, etc..,,, the number has changed to the positive
$51,000...
AGain, thanks for your help and Eduardo - thank you for your very prompt
response... and I'm sorry I wasn't clear on what the number was.. any other
replies would also be appreciated as this is really bugging me..
Thanks again.

 

[smartin]

If I told you last month I project I will pay you -31000 at the end of
the year (i.e., you would pay me), but this month I say things have
changed and I project I will pay you +51000 at the end of the year, what
does that change mean to you?

Hint: "Change" means "subtract". Don't be confused by double negative
signs... they work out in the math.

 

[Eduardo]

Hi,
Ok if you original forecast was a loss of 31000 and then after some changes
you got a profit of 51000 that means that somewhere you have a profit of
82000 added, think about something suppose that you have the loss of 31K as
follow
Sales 100
expenses 131
(Loss)=(31) this was your original

then suppose that you discover that you miss sales for 82K so your new
income statement is as follow

Sales 182
Expenses 131
Profit 51

Hope this explain clairly

 

[Tree]

Perfect explanation and I greatly appreciate your guidance.. I of course feel
like an idiot, but at least now I am an enlightened idiot..
Thank you again for your time..

 

[Tree]

Eduardo,
Thank you for this very clear explanation - as I told smartin I feel like an
idiot! Amazing how something like negative number can completely erase all
you've learned... I appreciate your taking the time to help me and I now
completely understand the problem and the right answer..
Thank you again so much for your time..