Company profit - Company value - ERROR?

[flygresor]

To begin with I must say that I'm not en expert in economics, but I must say that I think that some things are really strange in this game.

If I take a loan, my profit and my company value is not increased, right?
How come that when I repay a loan, that my company value and profit is dropping with the same amount that I just repaid?

How come that I make a profit every week for 30 weeks of 3-5-7 millions per week but my company value has just gone up from -50 to -20 millions, and my money from 20 to 50 millions? It should be an increase of 100-150 millions but is just 30 millions. Where is the profit disappearing?

It really doesn't make sens, please help me, whats wrong?

[Brockster]

Why would you have an increase of 100-150 million? You said yourself that your value went from -50 to -20. That's a 30m difference and that justifies your 30m increase in your money.

[flygresor]

If I make a profit of 3-7 millions per week in 30 weeks, gives 30x5 = 150m in profit. Why just 30m in money, where is the rest of the profit?
I haven't done any other transactions during that time. I haven't bought or sold any thing.. Just running my Airline with profit, but still have no money. Profit margn -1.28%... in my eyes it doesn't make sense.

[swiftus27]

There should be "T" Accounts set up.

The value of a company is Assets minus Liabilities. 

When you take out a loan, you have an increase of $xxx in your Cash Account.  An accountant then puts $xxx into your Liabilities (Long Term Debt) Account.   Cash is an asset.  Debt is a liability.  Therefore, when you take a loan out, there should be no change in your company's value.  Conversely, when you pay a loan off, there should be no change in value. 

Where the game's error is is in the income screen.  Paying a loan back takes away from your annual income when it shouldn't.  However, taking the loan out does nothing to your income statement.   Essentially (and I want this tested), let's assume that you have a $100 million profit year to date and it is December 31st.  Can it be so easy that I can take a loan out for $100 million and immediately repay it in order to show that I profited nothing for the year?   The only deduction one can take from loans is the interest that is PAID (not accrued). 

[Howard]

Are you getting your weekly profit amount from the income statement or the economy overview? Overview shows pretax profit so you would have to deduct an additional %25-%30 depending on where you are based.