Hi, Game World #2 SIRIUS Airlines
1. I leased an airplane and aside from the 4 month lease down payment, I should not be paying leases for the first month. But I do. The downpayment is deducted from my cash which I cant find on the balance sheet, at the same time I see lease payments from day one.
2. Depreciation - yes, must be accounted for in a balance sheet but: should not have an effect on your cash. At the moment it at least seems we seem to pay the depreceation in cash. Or am I getting something wrong here. In my opinion the depreceation should only have an effect on the "book" value of your assets.