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World 15 Company 2 Year 5 Quarter 2 CONSOLIDATED INCOME STATEMENT 11-12-2013 A BUSINESS POLICY GAME, 6TH EDITION 14:11:41 Copyright (c) 2010 by Richard V. Cotter and David J. Fritzsche ____________________________________________________________________________ Consoli- Merica Merica Merica dated Area 1 Area 2 Area 3 Sereno M$000s M$000s M$000s M$000s Ps000s Net Sales: to Customers 5568 1512 1814 1484 5016 to Affiliates (cost + 20%) 0 0 2058 0 0 to Liquidators (at cost) 0 0 0 0 0 Less Cost of Goods sold 3173 1092 2619 1166 2342 Less Value Added Tax 76 0 0 0 502 Gross Profit 2319 420 1253 318 2172 Selling Expense: Advertising Expense 234 60 60 60 360 Sales Salaries 143 33 51 36 152 Sales Commissions 127 35 46 35 74 General Selling Expense 616 133 169 137 1169 Transportation Expense 305 111 23 105 437 Sales Office Depreciation 12 3 3 3 19 Total Selling Expense 1437 375 352 376 2211 Admin and General Expense: Research and Development 1 0 1 0 0 Total Training Expense 42 12 30 0 0 Storage Expense 35 12 7 12 24 Executive Compensation 256 29 88 29 726 Other Expense 0 0 0 0 0 Total Adm & Gen Expense 333 53 126 41 750 Total Operating Expense 1770 428 478 417 2961 Operating Profit (Loss) 549 -8 775 -99 -789 Other Income: CD Interest 0 0 0 0 0 Capital Gain (Loss) 0 0 0 0 0 Other Expense: Loan Interest 0 0 0 0 0 Bond Interest 50 0 50 0 0 Net Profit (Loss) Before Tax 499 -8 725 -99 -789 Less Income Tax 195 0 195 0 0 Net Profit (Loss) After Tax 304 -8 530 -99 -789 Foreign Currency Adjustment 175 Comprehensive Income(Loss) 129 -8 530 -99 -789 ____________________________________________________________________________ Tax Loss Carry-Forward -77 0 -247 -789 Notes: Translation Exchange Rate 1.00 1.00 1.00 6.62 Minor differences in translation may be due to rounding errors. Purchases from Affiliates is consolidated with Sales to Affiliates. Dividends to Parent is consolidated with Dividends from Subsidiaries.