Income Statement (Railroad Tycoon II)

In the game Railroad Tycoon, a company's revenue and expenses statistics can be viewed in the Income Statement (or Income tab) of the Company Overview Screen. The first page shows lifetime revenues and expenses, and each page thereafter shows the statements for each year.

## Revenues

### Passengers

The listed Passenger revenue is based on all passenger revenue that is created from delivering passenger cars to stations that demand passengers. The total listed in the income statement disregards any extra passenger revenue created by station support buildings (which goes under station revenue), but does include all other revenue modifiers, such as dining cars, manager bonuses, named trains and even event triggered passenger revenue modifiers. Revenue generated by all other types of cargo, is listed under the Freight section of the Income statement. The reason given in the official strategy guide for having passengers and freight separate in the income statement is because passengers are a much more dynamic cargo that behaves much more differently to all other cargoes. For both passenger and freight cars, car maintenance is shown in the expenses section in it's own ledger.

### Freight

The freight ledger in the income statement refers to any revenue that is produced delivering cargo (except passengers) to stations that accept it. Similarly to the passenger figure, station revenue is ignored from this figure (under it's own line, but all others are included. Also, any industry investments are also excluded from this figure, and fall under industry investments.

### Stations

The Station form of revenue takes in a wide variety of forms, including station support buildings' income, as well as Station Revenue. Station Revenue is calculated by taking $4K from each car of full cargo that is delivered, plus any bonuses that pertain to it. Station Revenue doesn't take into consideration the distance the cargo has traveled, and purely is a flat amount that is paid for the processing of the cargo by the station. So, a six car train will produce $24K on arrival to it's destination, regardless of where it came from. When a station doesn't demand a type of cargo, and that cargo is delivered, then the only amount paid to the player in fact is the station revenue. If an AI was to unload it's cargo at your station, then you would receive $1K per load of cargo hauled as part of a station fee, and vice versa would happen if you unloaded at a competitor's station. This station fee would also show up in the Station Revenue ledger. Station Support Buildings (Hotels, Restaurants, etc.), provide extra income for cargo that is delivered to stations that have them. The extra income that is paid to the player is also listed in station revenue.

### Industry Investments

This line of the income statement refers to the total profit/loss received from industries bought by a player's company. Industry Investments are usually the most reliable source of income for your company, due to the fact that industry profit is less affected (or perhaps not at all) by demand levels of a station or by economy level. Buying an industry does not feature in the Income Statement, as it is listed on the balance sheet as an equity. However, when manually selling an industry at half-price, the loss made from selling does show in Income. Also, losses incurred by producing industries that are owned by the player are included as a part of the industry investments revenue.

### Miscellaneous

Miscellaneous Revenues feature a variety of income sources, including money that is received as prize from connecting to a certain city, and cash both received and lost from an event.

## Expenses

### Track Maintenance

Track Maintenance is a fixed amount that is paid per month and is based upon the amount of track owned by a company. Each month, 0.5% of the total track value of the company (found in balance sheet) is paid as maintenance, and therefore each year will show 6% of the total track maintenance. Note that track value is not the same as the cost of the track, as it doesn't take into consideration any terraforming cost which comes with building track. The initial terraforming cost instead placed under track maintenance, but no further terraforming maintenance is paid thereafter. Bulldozed track, trees and stations also is lumped into the track maintenance as part of a loss, so it is important not to destroy too much company equity at one time, or stocks will plunge. Interestingly, bulldozing of other entities such as industries are counted as equity under land rights.

### Engine Maintenance

Engine Maintenance is inclusive of the annual engine maintenance that is paid for all locomotives. This figure will increase year on year as engines age...

### Car Maintenance

A company's total car maintenance is calculated by deducted $200 of company cash each month for each car that is in service at the turn of each month. This figure is flat regardless of any conditions. The income statement is showing both the lifetime statistics for car maintenance as well as the figure recorded for each year.

### Overhead

The expenses that are categorized by overhead is an amount paid monthly by the company, in order to cover 'the assorted costs of running a business'. According to the manual, this year of overhead ranges between 1-3% of yearly company revenue. However, it appears to be calculated through taking average revenue over several years...

### Interests

Interest in the game Railroad Tycoon II is the amount of money that is made each year from company money (debt inclusive) that is sitting the bank account. The amount that is made/loss is dependent on the interest rate, which is multiplied with the company cash, and added to the company cash. However, if a company has more debt, than total cash, then the interest is negative, and money will be deducted from the company each month, just like as if there was a loan in arrangement. More information about the details of Interest can be found in Company Finances.

### Salaries

The expenses under salaries only include the amount paid by the company to the chairman (often the player) and his manager. Whenever the game mentions salaries, they are always referring to a amount paid per month, so for example when the annual report states that the player now earns a salary of $8,000, this figure is deducted from the company balance each month, along with whatever the manager earns.

### Miscellaneous

Miscellaneous expenses includes quite a variety of different sources. This includes the loss of equity that is obtained from upgrading station support buildings and as well as upgrading stations. Any territory rights that have been purchased also fall here, as well as any expenses that result from events effects.