PseudonymIncognito

PseudonymIncognito t1_ja8nopr wrote

The other interesting thing that I learned from someone in the business is that a healthy grocery store will have its inventory turns shorter than its credit terms (i.e. by the time they have to pay for their inventory, they've already sold it).

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PseudonymIncognito t1_isdve93 wrote

So then how does the money get from the business to the owner in order to pay the mortgage? The owner is either drawing a salary, or is taking some other capital distribution from the business, which should be reported as income to the appropriate taxing authorities, or the business is a pass-through entity in which case the business income is their personal income and should also have been reported to the taxing authorities.

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