CDS Monthly Financial Report December 2006

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Sudane Erato
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CDS Monthly Financial Report December 2006

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CDS Monthly Financial Report December 2006

Well, time for another financial report. The reports are located at the usual places:

Neufreistadt Balance Sheet in Lindens ... heetLD.pdf

Neufreistadt Balance Sheet in US Dollars

Neufreistadt Income/Expense Report in Lindens ... enseLD.pdf

Neufreistadt Income/Expense Report in US Dollars ... xpense.pdf

as well as through our website (US dollar versions only):

As usual, my comments are expressed in US dollar terms. Someday, we'll be doing these in Linden's, but it may have to wait until they accept monthly fees in Lindens, and that could be a long way off.

Its the end of the year, which means nothing except that our elections are coming and with the new RA a new budget. Our budgets have been created to coincide with the 6 month RA term, so that means far more than the calendar year. And, in fact, the budget for the just completing term is particularly useless, since this period coincides with the purchase of a new sim. Because it's only our second, we have had little info on which to make assumptions. The next sim acquisition will be able to be better budgeted because of this.

Let's look at the Income Statement first. Land "tier" revenues for NFS: $273. For CN: $251. Now, we do have some prepayments here which distort the performance. But regardless, our unalterable commitment to LL is $195 per month for each sim. CN only began selling land on November 1st, and its been my custom not to collect a tier fee for the first partial month of residency. So, our first full month of tier collection for CN, and we're already over the $195 committed expense! Forgive my enthusiasm, but, so far, we are doing something right. This a *great* schedule of converting land to revenue-producing.

"Land Sales Revenues in NFS" is a complex number, composed actually of sales in both CN and NFS, expressed in a way that i haven't worked out properly yet. And, indeed, not the total amount of sales either. In fact, the only really significant thing about that number, $207, is that it exists at all! This is the first month that there has been any Land Sales Revenue since we bought the CN sim. $207 is the amount of Sales dollars collected *over* the amount needed to pay our treasury back for the purchase of the sim. In other words, the $1156 that we paid for CN is now paid back to the Treasury, and all Land Sales from here on out will show up in our Income Report as Land Sales Revenues. Another milestone! Again, in only the second month after we intiated land sales.

The expense side of the Income Expense Report is unremarkable. The fees for two sims, some advertising costs associated with new sim, and small fees for 5 paid officials. The bottom line for December is that we collected $444 more than we expended.

And, as usual, that $444 carries over to the Balance Sheet to show that we have a Total Equity (total value of the "entity") of $444 more than it was last month (at the very bottom of the report). "Total value" means all the money and things that we "own" minus all the money that we "owe". $1417 is the net worth of the CDS... very respectable. Let's look at what makes that up.

Assets: what we own. Almost all of our owned stuff is cash (another very nice situation to be in). As you can see, the "Total Land Asset" (under Fixed Assets), is now zero. That means that the money we spent buying the two sims has been now recouped by the Treasury by selling that land to citizens. Right after we bought CN, that number was $1156, which is what we paid for CN. But in the last two months people have been buying pieces, so that what we own goes down, and now is completely zero. Further sales, as I've mentioned above, become revenues, since we obviously can't have "-" value in land. We also have small investments in buildings and software.

Liabilities: what we owe. We have two catagories here. Current liabilities are short terms loans which we'll have to pay off soon. You see that we owe $3383, which is due on April first. Actually, we'll also owe 3% interest on that, which I'll have to add to the next financial report. That will mean that on April 1st, we'll need to pay back, if we can, $3484. You may find it interesting to realize that we can already pay that amount back; we have more than that much cash in the bank. If we continue breaking even or better (and almost every month in our history we have done better than break even), we will easily meet our entire commitment on April 1st.

The other part of what we owe are the Long Term Liabilities, money which is not scheduled to be paid back anytime soon. This is composed entirely of escrow deposits made by various of the CDS institutions.

All in all, and excellent picture. Please do not hesitate to contact me with any questions.



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