Prepaid leases

[Slurve30]

Been a while since I played this game.  Just starting up again with GW#3.  It seems like I'm still paying leases on planes on the used market?  I thought the first four months were prepaid yet my lease payments on my income statement are currently docking me 659K/week.  Or am I just mis-calculating somewhere? 

My airline started in February but it's only April in game time so I believe other than lump sum lease payments shouldn't that line item be zero?

[JumboShrimp]

The accounting was completely re-done to be based on real business world accounting rules (GAAP).

You need to look at both, the income statement and cashflow report.  On the day of the lease, the cashflow report shows the flow of cash for prepaid leases (but income statement does not).

Throughout the 4 month prepayment period, the income statement reports these (accounting) expenses, but the cash is not going out.  Instead, the pre-paid leases are backed out of the operating profits on the cashflow statement to show the credit.

[schro]

Initial transaction does not appear on the income statement. It's on the statement of cashflows - cash in exchange for prepaid leases. Then, each week as the lease is earned, the asset of prepaid leases is decreased by being expensed as lease expense. After the first four months are up, the transaction hits cash.

[Slurve30]

Got it!  Thanks for the reply!  It has been a while!