balance sheet doesn't make sense

[whiskiz]

or am i reading it wrong?

https://imgur.com/StgE3bP

for the last month, it says:

my expenses was 4.6M

my profit 3.2M

i only own what's shown in the image, those 3 farms feeding into that 1 retail store

as you can see, on the retail store it shows it's generating the full 3.2M profit alone (the retail store balance sheet is 2.4M operating expenses, and 3.2M profit)

so that isn't for example my profit left "after" expenses, as that is the exact and only profit i'm making in total - so how am i making 3.2M profit a month when i apparently have 4.6M total in expenses? Shouldn't i be down -1.4M a month, or do you not adjust profit for expenses?

i'm trying to learn how best to match supply with the overhead needed to create it, so i can compare how efficient each setup is big or small, for sized cities and their different sized needs - but i don't understand the balance sheet to be able to

[Pietro]

You didn't circled the most important number the operating revenue !

This is the total amount of money that entered your store/factory/farm from customers or other companies.

Then you subtract the operating expenses, which is the total amount of money that left your store/factory/farm to pay your supplier ( cost of sale) to pay for the salary of your employee ( salary expense) to pay for electricity and maintenance of machines ( operating overhead) and so on.

The reminder if the operating profit. those 2.8M is a positive, which means you made money.from the retail store, but maybe you lost some on farms. the total resuslts of your firms is a net +2.8mil

That is not the net profit though. This one include other things than just money, but also value. You have gain 600K from land and asset value. This is most likely because the land on which you built the retail store and the farm has increased in value. It's not money on your bank account.You also had to pay some interest to the bank, this is money on your bank account that is being removed .

If you had shares from another company which value increases it would also be written in this area as "stock return", without it being money on any account, just value. But if they pay dividend, then that's money on the bank account also written here.

I would say the 3.32M you see are the retail store indiviual net profit. It must generate 5.6M operating revenue, this then explain that with 2.4M operating expenses, there is 3.32M profit left. To go from 5.6M revenue to the 7.4M shown on the screen one must account for farms selling their raw goods i presume. It's not the same number as the 3.198M shown as the corporate net profit.

Does that makes more sense ?

[whiskiz]

ahh i got mixed up with what revenue is

it's the revenue that accounts for both expenses and profit, not expenses out of profit - or profit after expenses

can tell i've never taken a business management class haha, thanks!