On August 1, 2014, Dana Hendley established Advice, a business-consulting firm organized as a proprietorship. The following conversation occurred the following February between Dana and a former classmate, Ed Monroe, at a business convention in Winnipeg.
Ed: Dana, good to see you again. Why didn't you call when you were in Ottawa? We could have had dinner together.
Dana: Actually, I never made it to Ottawa this year. My husband and kids went up to our cabin in the Muskokas twice, but I got stuck in Toronto. I opened a new consulting practice in August and haven't had any time for myself since.
Ed: I heard about it . . . Advice . . . something . . . right?
Dana: Yes, Advice. My husband chose the name.
Ed: I've thought about doing something like that. Are you making any money? I mean, is it worth your time?
Dana: You wouldn't believe it. I started by opening a bank account with $30,000, and my January bank statement has an ending balance of $75,000. Not bad for six months-all pure profit.
Ed: Maybe I'll try it in Ottawa! Let's have breakfast together tomorrow and you can fill me in on the details.
Comment on Dana's statement that the difference between the opening bank balance ($30,000) and the January statement balance ($75,000) is pure profit.