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+--- Thread: INCOME STATEMENT (/showthread.php?tid=764)
INCOME STATEMENT - Pol20017 - 08-29-2018
Hi, I have tow questions:
1.- In the income statement page why do the aircraft purchases appear in red? I know it's money that you expend but they give you more assets and, therefore more credit
2.- What does Incidental Expenses/fees mean?
RE: INCOME STATEMENT - Anzatax - 08-29-2018
When you purchase aircraft, you withdraw money from your bank. That transaction will be then seen as an expense and negative profit, which makes it red. Your income statement does not show you your airline value or assets, it just shows you the records of money moving through your bank.
I am not sure what Incidental Expenses mean here, but I guess it has something to do with the Misc Operating Costs, as well as maybe employee travel expenditures. This article should be able to give a more detailed description: Incidental Expenses
RE: INCOME STATEMENT - squaregatescrub - 08-29-2018
That's what I was thinking too. The Income statement only shows the actual cash flow.
RE: INCOME STATEMENT - Unknown98 - 08-29-2018
Incidental expenses are any one-off expenditures that do not recur or fit into other categories - for example installing cabin configurations or upgrading your HQ building.
RE: INCOME STATEMENT - Pol20017 - 08-31-2018
Ok thank you very much guys!