According to Fortune magazine, the following amounts were used to compute the “net profits” of the movie Indecent Proposal:

GrrossMPeCelpts f.feasta.sottockeeteort toreeaee atte tet ae $162,235,826 Less: Distnibutlon| feesiasren-cvne dst trenctar ae eee See 56,338,707 Grossiaftemdisthibutionifeesaanauatcnat a ean meee $105,897,119 Less: Accounts receivable (net of distribution fees) ....ssss0se 5,163,725 Balan ce Warteramuenttrerssscsasssseesresnerer tert reer scent eee eee $100,733,394 FessuDisthibutionyexpenses ancnicmn mene eee 55,062,679 Balances csecscteetirccsvsisuceich dteicenceean eer ce eee oe $ 45,670,715 Lessiinterest' on negatlve cost. cisiAcsasanccnccssmsnrnwccanennctneen 8,002,432 NeRagiVer cost irc.:.8oetnccctamsn Moneta ncn meee 73,418,212 INGG( DOTS i cscstscbesccusscsvsrasc eter VER eee nee $ (35,749,929)

Many of the second-tier stars, writers, and producers receive bonuses based on net profits.

Required: Explain what you think each of the items represents. Explain whether the cal- culation of the net profits seems reasonable to you.

 TYK-1