Mega Games Ltd produced the following Statement of Financial Performance for the year ending 31 December 2016.

Mega Games Ltd
Statement of Financial Performance
For the year ended 31 December 2016
REVENUE
	Sales	2,900,000
	Cost of goods sold	(380,000)
Gross Profit	2,52,0000
EXPENSES
General & Administrative Expenses	(113500)
Marketing Expenses	(208,000)
Employment Expenses	(776000)
Occupancy Costs	(553000)
TOTAL EXPENSES	(1650500)
NET PROFIT (BEFORE INTEREST & TAX)	869500
Income Tax Expense (30%)	(260850)
NET PROFIT AFTER TAX	608650

Task1. Prepare the budgeted statement of financial performance of Mega Games Ltd for the year ending 31 December 2017. Please note the following changes:

1. Due to new marketing and promotion strategy, revenue will increase by 9%.
2. Due to aggressive marketing, the cost of goods sold will increase by 12%.
3. General and administrative expense will remain same in 2017.
4. Marking expense will go up by 19%
5. Employment expenses however will decrease by 5%.
6. The Australian Government's decision to reduce corporate tax from 30% to 28% will come into effect in 2017 reporting period.

Task 2. What is overall change in the net profit after tax in 2017 financial year compared to 2016?

Task 3. Discuss some of the suggestions that Mega Games Ltd may consider implementing to improve its performance in 2018 financial year.