DeWese--Trouble Brewing

I don't want this to be an accounting lesson, but expenses like sales commissions, office salaries and phone charges are paid from the green area labeled "SG&A" (sales, general and administrative expense). The blue and red slices depict the cost of producing a printed product. Interest is spent on the debt used to finance plant equipment and, sometimes, working capital and is the small, light blue slice. The yellow "profit" slice is first used to pay federal taxes, and whatever is left flows into the equity account to finance the future growth of the company. If your company has no yellow slice, you are either breaking even or losing money. Neither result is good.