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The speaker meets with a realtor who is struggling with financing after being declined by multiple banks. The speaker reviews the realtor's profit and loss statement and is shocked. In this video tutorial, the speaker will explain how to create a profit and loss statement, its importance, and provide a template for businesses to use. A profit and loss statement is defined as gross sales minus costs and fixed expenses over a specified period. This statement is crucial for business management, financial planning, and decision-making.