When the Whole is Greater than the Sum of its Parts

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counting
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When the Whole is Greater than the Sum of its Parts

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When trying to assess how corporations activities effect a city's economy, I created a corporation produces everything from the source materials to end products, and hopefully the financial report can sum up the total number for me to analysis. It's a single city game of 2 million population, no inflation, and the income statement says my corporation has 8.2 billion annual revenue. However these numbers end-up saying each citizen spent 4.1k on average to my corporation annually, and it didn't feel right (from the developer of city simulation demo picture, 100 index city has just 3.5k GDP per capita)

Then I realized the in-game corporate income statement isn't consolidated financial statement. I vaguely remember in advanced accounting the sum of individual income statements add-up being greater than the real economic activity as a whole, since the profit/loss between companies under the same corporation need to be cancelled out. For example, when my stores/factories spend a lot of advertisement fees to my media firms, or my stores pay my factories, these activities don't generate "real revenue", but simply my one hand pays another. I want to know exactly what my corporation gained and paid externally. Hence I did an estimation of the consolidated financial statements, using the firm division revenue/profit reports and numbers in "year-to-date corporate income statement" at Dec 31.

The results are, my revenue from the city is really just above 3 billion, instead of 8.2, and the expenses is just about 2 billion in total. The whole manufacturing with retailing generates about 900m profit. media firms deduced of internal advertising have net profit of 155m (mostly from local "grey ads"), and real estate gathers merely 18m rent profit. The actual profit margin is a lot higher than it says (33.3% instead of 12.6%). Interestingly since I employed about 36k people, their average wage is around 12k which is a lot higher than supposed GDP per capita (I guess I paid my people well :lol:). Also, I used statistic sampling to determine the total freight cost, and surprisingly it's over 110m, which means if the mechanism for transportation companies is implemented, they really could get enough income from firms transporting goods all around (just city-bound freight in one-city is large enough, inter-city freight would be really profitable). This analysis also shows citizen really don't spend all their earning on buying stuffs, and they probably borrowing a lot of money to play on stock market, since the total white stock outstanding is amazingly huge, at the amount over hundreds of billions, bankers must have a field day in game :roll:
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LCCL annual income statement.jpg
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