The Lean and Mean Machine Pte Ltd Monthly Income Statement August 2009

Below is the first monthly income statement for my company, The Lean and Mean Machine Pte Ltd. I would like to highlight several conventions of my income statement. This is not your typical income statement because the company makes equity investments and I chose not to record this in the income statement because it makes little sense as it will make my company appear to make losses via relatively large investment expenses.

The income statement will recognize capital gains as revenue and not the revenue from the sale of shares.

Needless to say, in August, the company made several investments in equities and that is not reflected in its income statement. It will be reflected in a special quarterly balance sheet that shows both the cost of my investments as well as their market value.

Revenue for this month is slightly higher than expected due to unexpected revenue from a chess tournament victory during the Merdeka Rapid Tournament. This, however, is offset by the much higher than expected expenditure on food. While it is still below budget, the company believes that there is a possible further cut in food expenditure in the near future to maximize profits.

Fuel expenditure is also higher than expected due to extra transportation services provided to friends in need. Fuel prices are expected to increase in September and the company will reassess the situation at the end of September.

Net profit margin is at 25%, which is satisfactory at this point. The company hopes to increase the NPM further by minimizing costs.

Net asset value (NAV) per share reflects the total shareholder's equity per share at market value as at 31 August 2009. This means at equity investments are valued at market price as at 31 August 2009

The Lean and Mean Machine Pte Ltd Copyright © 2009 Income Statement	August 2009
	Total
Interest Income	-
Dividend Income	-
Net gain on quoted disposal of investments	-
Revenue	2,273.28
Less: Operating Expenses
Food	582.15
House rent	330.00
Fuel	156.38
Parking	156.00
Electricity Bill	55.40
Internet Bill	55.00
Futsal	27.00
Investment Fees	44.69
Others	295.60
Profit before tax	571.06
Income tax expense	-
Profit after tax	571.06
Net Income	571.06
Basic Earnings Per Share	0.0714
Net Profit Margin	25.12%
Return on Equity	6.66%
NAV per share	1.0122