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The potential client, a realtor, was in financial distress and had been rejected by multiple banks for financing. Upon reviewing his profit and loss statement, the narrator also started crying. In this video tutorial, the narrator explains what a profit and loss statement is, why it is essential, and provides a template for viewers to use for their own businesses. A profit and loss statement, or P&L, is calculated by subtracting costs and fixed expenses from gross sales over a specific period, such as monthly, quarterly, or annually. Profit and loss statements are crucial for understanding financial health and making informed business decisions.
