Spolu 7: Example of a Profit Distribution

In the last section, I briefly suggested how the profits are to be distributed by using the ratio of 1:1:1:1:1:1. For me, such an explanation would be unsatisfactory. To better understand the distribution, I have created a fictitious spolu and given it a simplistic income statement. And from that income statement, I have created some accounting schedules to show how the profit is distributed.

EZ Way Productions is a small business under the spolu network. What it does is not important, but here is its income statement for its last fiscal year. This data will later be turned into calculations for the profit distribution.

Writer’s attempt to bring a WORD table to Medium. Visually join the two images.

Visually join the two images to make an income statement

Notes

· The income statement should be ready about one month after EZ’s fiscal year end.

· PD is income from profit distribution that came from other spolus.

· The asterix (*) signifies customers and suppliers who belong to the spolu network. They will share in the profit distribution. The others will not.