Projected Income Statement

Real
1 Year ago
Gross sales
Sales - Retail price 4 410 000
Less: Clearance discount 0
Less: Middlemen remittances (Note 1) 1 601 714
Less: Pre-launch discount 0
Net sales 2 808 286

Cost of goods sold

DVD inventory - Beginning of year 2 295
Add: Cost of goods manufactured 96 111
Cost of DVDs available for sale 98 406
Less: DVD inventory - End of year 4 154
Total cost of DVDs sold 94 252
Add: Download costs 0
Cost of DVDs sold 94 252

Gross profit (Loss) 2 714 034

Operating expenses

Development cost (Note 2) 1 434 500

Cost of re-releasing games 0

Communication expenses 1 173 750

Customer services expenses 81 576

General and administrative expenses

Salaries and benefits 138 526
Rent 42 000
Computer hardware maintenance 21 518
Other expenses 35 752
Total general and administrative expenses 237 795

Total operating expenses 2 927 621

Operating income (Loss) ( 213 587)

Operating margin -7.6 %
Financial expenses
Banking Charges 842
Interest expense on credit line 0
Interest expense on long-term 30 465
Total financial expenses 31 307

Investment incomes 0

Income (Loss) before tax ( 244 894)

Income tax expense 0
Tax credit for past losses 0
Intervention by the instructor 0
Net Income (Loss) ( 244 894)

Note 1
Amount paid to distributors, retailers and console manufacturers.
Note 2
Game development costs are amortized over three years.

Net Profit Margin -8.7 %

ment
Projected Variation
Year 1

4 890 000
0
1 775 576
0
3 114 424 + 10.9%

4 154
109 613
113 767
4 750
109 018
0
109 018 + 15.7%

3 005 406 + 10.7%

1 117 000 - 22.1%

0 -

1 173 750 0.0%

84 348 + 3.4%

126 474
38 000
16 755
40 996
222 225 - 6.5%

2 597 323 - 11.3%

408 083 + 291.1%

13.1 %
 934
0
30 465
31 399 + 0.3%

25 296

401 980 + 264.1%

( 128 634)
128 634
0
401 980 + 264.1%

12.9 %