That’s not altogether true what you mentioned. Only product sold can the tax debt be sold leveraged many times over. They can’t sell shelfed consumable tax’s paid. There is no wage tax’s paid by the company so any administration costs are also deducted. The bottom line will exclude anything that has no tax association when sales tax is concerned.
In short it’s pre sales tax “ receivable consumable tax relative too the final sales tax after all wages and depreciation has been taken into account.
EBIDA ( earning tax’s before interest tax’s, depreciation tax’s and administration tax’s ) Remember nothing is earned until it is sold. This statement also takes into account recievables as a product and service that is sold on credit. It doesn’t however include any interest charges cause there is no interest charges that can be charged on tax debt “ a zero sum out come “.
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