Povećali smo prihod.

to be

Breakdown of Povećali smo prihod.

• prihod: income; revenue
• povećati: to increase

Questions & Answers about Povećali smo prihod.

Why is there no word for we in the sentence?

Because Serbian often drops subject pronouns when they are already clear from the verb form.

In Povećali smo prihod, the combination -li smo already tells you the subject is we. So mi is unnecessary unless you want to add emphasis or contrast:

• Mi smo povećali prihod. = We increased the revenue.
  (emphasis on we, not someone else)

Without mi, the sentence sounds more natural and neutral.

What does smo mean here?

Smo is the 1st person plural form of the auxiliary verb biti (to be) used to make the past tense.

So:

• smo = we are as a standalone verb form
• but in the past tense, it functions as an auxiliary: we have / we did

In this sentence:

• povećali = past participle
• smo = auxiliary

Together, povećali smo means we increased or we have increased, depending on context.

What exactly is povećali?

Povećali is the past active participle of the verb povećati (to increase).