Quote:
Originally Posted by ::matthew
Ron Faulkner, president of Tulare-based Faulkner Trucking, estimated it would cost him $7 million to replace 26 of his 35 aging trucks by 2014. He said he doesn't know if he can afford it, since his company only turns a profit of $50,000 a year.
The guy's company has 35 trucks and turns a 50K profit? Perhaps he ought to consider something different.
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Matt,
he turns a profit of 50,000 a year net....that is after all of his driver's medical is paid, maintanence of the vehicles, paying for his secratary to go on maternaty and things of that nature....the owner probably pays himself 100,000 dollars or more. and 50,000 is left over to be invested in the company. 50k is alot of money considering all the things that can happen throughout one year to 35 trucks and over 35 employees. That is only enough money to buy one new truck a year. That means out of a 35 truck fleet each truck get replaced every 35 years. the owner is probably hoping he can get 20 out of them.
I worked for a fertilizer company in san diego county and that is how the owner delt with his finances and most small business do that also as far as taxes are concerned. the owner charges his company what he is worth (which is always inflated), pays his employees, medical, all th othe associated cost with doing business and IF there is mony left over it is invest back into the company....
Stephen