Lesson 1 · 50 minutes · Grades 9–12
Where did $100 go? A lesson on how companies make money
Where did $100 go? is a free 50-minute high school lesson on where a company's money goes. Students guess, then reveal, how much of each $100 Nike, Costco, Apple and McDonald's took in went to costs, taxes and profit.
By Hardik Bhandare · Checked against filings: . Editorial policy. Corrections
- Grade
- High school, grades 9–12
- Time
- 50 minutes (splits into two 25-minute blocks)
- Formats
- Web page, student page, teacher guide (PDF), worksheet with exit ticket (PDF), answer key (PDF), slides (PowerPoint)
- Companies
- Nike, Costco, McDonald's, Apple
- Data
- Data from Nike's FY2026 Form 10-K, filed Jul 15, 2026; Costco's FY2026 Form 10-K, filed Oct 7, 2026; McDonald's FY2025 Form 10-K, filed Feb 24, 2026; and Apple's FY2026 Form 10-K, filed Nov 3, 2026. Checked Nov 7, 2026.
- Edition
- 2026–27 first edition, v1.0
- License
- Free under CC BY-NC 4.0. No student logins.
It includes slides, a worksheet with an exit ticket, an answer key and a teacher guide, and every company number comes from the company's Form 10-K.
What's included?
- Teacher guide (PDF)PDF · 244 KB
- Student worksheet (PDF)PDF · 101 KB
- Answer key (PDF)PDF · 146 KB
- Slides (PowerPoint)PPTX · 61 KB
Student page (no login, no answers): cityfort.co/teachers/how-companies-make-money/where-did-100-dollars-go/student · short link for the board: cityfort.co/class/receipt
Share with a class or a colleague
https://cityfort.co/teachers/how-companies-make-money/where-did-100-dollars-go
What will students learn?
Students can explain that revenue is the money a company takes in. They can list where it goes (costs, taxes) and what is kept (net income). They can convert a company's annual figures to "per $100."
- Students learn that revenue is the money a company takes in. They see where it goes: costs, then taxes, then what is kept as net income.
- They also learn to turn a company's yearly figures into "per $100" amounts. That makes a giant company and a smaller one easy to compare.
How long does this lesson take?
50 minutes (splits into two 25-minute blocks)
| Minutes | Step | What happens |
|---|---|---|
| 0–5 | Hook | Hook: "Out of every $100 Nike took in during its FY2026 year, how much do you think it kept?" Students write a guess. |
| 5–12 | How a receipt works | The teacher walks through a made-up lemonade-stand receipt: money in, costs, taxes, kept. |
| 12–30 | Estimate a receipt | Groups get one company's receipt lines without the amounts. They estimate each line so the total is $100. |
| 30–40 | Reveal and score | Reveal the real receipts. Groups work out how far each estimate was from the real amount. |
| 40–47 | Compare | Whole-class compare: why does Costco keep about $3 of each $100 and Apple about $27.5? |
| 47–50 | Exit ticket | Exit ticket (3 questions). |
What do students need?
- The slides (projected) or the printed worksheet.
- One worksheet per student. It prints in black and white on two separate pages; page 2 is handed out after the reveal.
- One set of receipt cards per group, printed from the teacher guide and cut apart.
- A calculator for the "per $100" questions.
- No accounts, no logins and no internet access are required. The student page is optional.
What numbers does the lesson use?
Each receipt shows where each $100 that came in went in one fiscal year, from the company's Form 10-K.
| Line | Per $100 that came in |
|---|---|
| Products sold (cost of sales) | $57.0 |
| Advertising and athlete deals (demand creation) | $10.2 |
| Wages, rent and other overhead | $24.4 |
| Income tax | $1.7 |
| Kept as net income | $6.7 |
| Total | $100.0 |
Source: Nike's FY2026 Form 10-K, filed Jul 15, 2026; Item 8, Consolidated Statements of Income, p. 55; Cityfort calculation: each line ÷ the total money that came in × 100.
| Line | Per $100 that came in |
|---|---|
| Merchandise costs | $87.0 |
| Running costs | $8.9 |
| Interest and tax | $1.0 |
| Kept as net income | $3.0 |
| Total | $99.9 |
Source: Costco's FY2026 Form 10-K, filed Oct 7, 2026; Item 8, Consolidated Statements of Income, p. 37; Cityfort calculation: each line ÷ the total money that came in × 100. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.
| Line | Per $100 that came in |
|---|---|
| Company-run restaurants (food, paper, pay, occupancy) | $30.7 |
| Selling, general and admin | $11.3 |
| Franchised restaurants' occupancy | $9.7 |
| Other restaurant and operating costs | $2.1 |
| Interest | $5.9 |
| Income tax | $8.7 |
| Kept as net income | $31.7 |
| Total | $100.1 |
Source: McDonald's FY2025 Form 10-K, filed Feb 24, 2026; Item 8, Consolidated Statement of Income, p. 39; Cityfort calculation: each line ÷ the total money that came in × 100. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.
| Line | Per $100 that came in |
|---|---|
| Cost of products | $45.0 |
| Cost of services | $6.1 |
| Research and development | $9.5 |
| Selling, general and administrative | $6.2 |
| Income tax | $5.6 |
| Kept as net income | $27.5 |
| Total | $99.9 |
Source: Apple's FY2026 Form 10-K, filed Nov 3, 2026; Item 8, Consolidated Statements of Operations, p. 32; Cityfort calculation: each line ÷ the total money that came in × 100. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.
Discussion questions
- Which line surprised you most, and why?
- What does Nike's "advertising and athlete deals" line tell you about how it sells shoes?
- Costco keeps less per $100 than Nike but takes in far more dollars. What's the difference between "per $100" and "in total"?
- Where would you find these numbers yourself?
How do I adapt it for ELL and IEP students?
- English language learners
- ELL: a word bank, a picture icon for each receipt line and the sentence frame "Out of every $100, ___ spent $___ on ___ because ___."
- IEP and 504 plans
- IEP: two lines of the group's receipt already filled in, an enlarged copy of the worksheet and a calculator.
- Advanced students
- Advanced: students work out a company's "per $100" amounts from its 10-K figures, using a given formula. Full details are in the teacher guide.
- Extension
- Students choose a second company from Unit 1's list and build its receipt from its Cityfort page. Examples: Chipotle, Coca-Cola, PepsiCo, Netflix or Walmart. They compare it with one of this lesson's four receipts. Describe the differences. Do not rank the companies. Read Cityfort's Learn entry What a margin means: dollars kept per $100.
Which standards does it support?
We say a lesson supports a standard, never that it covers it fully.
- Investing 8-4 (Jump$tart / CEE National Standards): Investors in corporate stock "become part-owners of a business" (shortened)
- 7.RP.A.3 (Common Core states): Use proportional relationships to solve multistep ratio and percent problems.
- HSN.Q.A.1 (Common Core states): Use units as a way to understand problems and to guide the solution of multi-step problems…
Teacher background in 2 minutes
Revenue and net income
Revenue is the money a company earns from customers in a year. Net income (profit) is what is left after all costs, interest and taxes recorded for that year.
A "per $100" receipt
A "per $100" receipt divides each line by the total money that came in, then multiplies by 100. It shows the share of each dollar, not the dollar total.
Why the hook says "took in," not "sold you a $100 pair of shoes"
In FY2026, stores and distributors that buy Nike products to resell paid 60.5% of Nike's revenue. Nike's revenue from them is what they paid Nike, not what shoppers later paid them. So the hook asks about the money Nike itself took in.
Why the receipts differ
Each one reflects a different business. Nike designs products and has outside factories make them. It spends to build demand: advertising and athlete deals took $10.2 of each $100. Costco earns thin margins on a high volume of sales, and members pay a yearly fee ($65 in the US). Merchandise costs took $87.0 of each $100. McDonald's is mostly a landlord and brand owner. Franchisees run about 95% of its restaurants and pay it rent and royalties. Apple sells devices and the services used on them. In FY2026, Services kept $76.2 of gross margin per $100 of sales, and products kept $39.3.
One thing to know about Nike's FY2026 numbers
Its cost of sales is after a one-time $986 million tariff benefit, before tax. Nike's Cityfort page says that equals $2.13 per $100 of revenue.
Fiscal years differ
Fiscal years differ: Nike's ended May 31, Costco's Aug 30 and Apple's Sep 26. McDonald's follows the calendar year.
If your class runs a stock-market simulation, these lessons can come before it: they explain what a company does and how it reports results. They do not suggest which companies to choose, and Cityfort does not run, rank or judge simulation picks.
Read more on Cityfort Learn: What a margin means: dollars kept per $100, Revenue vs net income: the top line and the bottom line, Fiscal years that don't end in December: Nvidia's FY2027 explained.
Splitting into two 25-minute blocks
To split into two 25-minute blocks, teach minutes 0–25 in the first block, ending once groups finish their estimates. Open the second block with a 3-minute recap, then reveal, compare and do the exit ticket.
The gap score is a guessing score about the company's costs. It is never a score about the stock.
What do the four receipts show?
Each receipt shows where $100 of a company's money went in one fiscal year. Amounts are rounded to the nearest 10 cents, as on Cityfort's pages, so $6.7 means $6.70.
Source: each company's Form 10-K, as shown on its Cityfort page. Checked Nov 7, 2026.
Each line is rounded to the nearest 10 cents, so a receipt may add up to $99.90 or $100.10 instead of exactly $100. Costco's and Apple's lines add up to $99.90 and McDonald's to $100.10.
"Took in" means everything that came in during the year. For Nike, Costco and McDonald's, that is revenue plus a small amount of interest and other income. For Apple, it is net sales of $478.8 billion plus $1.2 billion of net other income.
How does the lesson support each standard?
This lesson supports the outcomes below. It does not cover all of any standard.
Standards text: National Standards for Personal Financial Education, Copyright © 2021, Council for Economic Education and Jump$tart Coalition for Personal Financial Literacy. All rights reserved. Reproduced for noncommercial educational purposes.
Common Core State Standards text: © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.
- National Standards for Personal Financial Education, Investing 8-4 (grade 8 standard, used as review): Investors in corporate stock "become part-owners of a business" (shortened). Supports this part of the standard: students see what the business behind a share does with the money it takes in.
- Common Core Math 7.RP.A.3 (Common Core states; grade 7 standard, used as review): "Use proportional relationships to solve multistep ratio and percent problems." Students turn yearly dollar figures into "per $100" amounts.
- Common Core Math HSN.Q.A.1 (Common Core states): "Use units as a way to understand problems and to guide the solution of multi-step problems…" Students keep billions of dollars and "per $100" amounts straight.
5-minute prep
- Print: the worksheet (one per student; hand out page 2 after the reveal, because it shows real amounts), one set of receipt cards per group, and the answer key for yourself.
- Project: the slides. The reveal starts on slide 7.
- Read: the "Teacher background in 2 minutes" box above and the discussion questions in the teacher guide.
How were the figures worked out?
Every company number comes from Cityfort's published pages for Nike, Costco, McDonald's and Apple. Each page traces its receipt figures to the company's Form 10-K on the SEC's EDGAR site. The answer key lists the 10-K line and page behind every receipt.
The receipts are Cityfort calculations: each line ÷ the total money that came in × 100.
Where does this lesson fit?
- Next: Lesson 2: Revenue, profit and cash
- Unit: How real companies make money
- Lesson 1 also works on its own.
- Learn (optional further reading, not needed for the lesson): Common business models · How to read a 10-K
Where do the numbers come from?
Data from Nike's FY2026 Form 10-K, filed Jul 15, 2026; Costco's FY2026 Form 10-K, filed Oct 7, 2026; McDonald's FY2025 Form 10-K, filed Feb 24, 2026; and Apple's FY2026 Form 10-K, filed Nov 3, 2026. Checked Nov 7, 2026. The lesson keeps these dated numbers until the next edition.
- S1 Nike: Form 10-K for fiscal 2026 (year ended May 31, 2026) · NIKE, Inc. (SEC EDGAR) · Jul 15, 2026
- S2 Costco: Form 10-K for fiscal year 2026 (ended Aug 30, 2026) · Costco Wholesale Corporation (SEC EDGAR) · Oct 7, 2026
- S3 Apple: Form 10-K for fiscal year 2026 (year ended Sep 26, 2026) · Apple Inc. (SEC EDGAR) · Nov 3, 2026
- S4 McDonald's: Form 10-K, fiscal year 2025 (ended Dec 31, 2025) · McDonald's Corporation (SEC EDGAR) · Feb 24, 2026
Questions teachers ask
- Is there a free lesson plan on how companies make money for high school?
Cityfort's Lesson 1, "Where did $100 go?", is a free 50-minute lesson for grades 9–12. Students see where each $100 four well-known companies took in went, using numbers from each company's Form 10-K.
- Is there a stock market lesson that doesn't involve picking stocks?
This lesson explains what the business behind a stock does with its money. It never asks students to choose a stock or judge one.
- Is there a 50-minute lesson about companies with an answer key that I can use tomorrow?
This lesson comes with slides, a two-page worksheet, receipt cards and a full answer key. The 5-minute prep box lists what to print, cut and project. Each group needs only its own company's cards.
- How old are the numbers?
The receipts come from Nike's, Costco's and Apple's FY2026 Form 10-Ks and McDonald's FY2025 Form 10-K, checked Nov 7, 2026.
- Can I use it in Google Classroom, and do students need accounts?
Every file works in Google Classroom as a plain link, PDF or PowerPoint file, and students never create accounts.
- Is it free to copy and adapt?
Cityfort's lessons are licensed under CC BY-NC 4.0. You may copy and adapt them for non-commercial use if you credit Cityfort, link to the license and note any changes.
Optional further reading
These pages are on the main Cityfort site, which has its own ads and sign-up options. No lesson step needs them.
How do I credit and share it?
Credit line to copy: "How real companies make money: Lesson 1 – Where did $100 go?" by Cityfort (cityfort.co/teachers/how-companies-make-money/where-did-100-dollars-go), CC BY-NC 4.0. Data from Nike's FY2026 Form 10-K, filed Jul 15, 2026; Costco's FY2026 Form 10-K, filed Oct 7, 2026; McDonald's FY2025 Form 10-K, filed Feb 24, 2026; and Apple's FY2026 Form 10-K, filed Nov 3, 2026.
License: CC BY-NC 4.0. If you change this material, please remove the Cityfort name or mark it as modified; changed versions are not reviewed by Cityfort.
Company names are trademarks of their owners; Cityfort is not affiliated with or endorsed by them.
Questions or corrections: contact us.
What changed (1)
- v1.0, Nov 7, 2026: First edition.
Last updated Nov 7, 2026.
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