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The guy in the meeting with a potential client was a realtor who got declined by five banks for financing. The client is in need of help after being rejected due to his profit and loss statement. The tutorial will show how to create a profit and loss statement, its importance, and provide a template for businesses. Profit and loss statements are calculated by subtracting costs and fixed expenses from gross sales over a set time period. Three main reasons to pay attention to profit and loss statements are discussed.