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Brown Cafe UPS Forum
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profits to management!! WHY??
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<blockquote data-quote="air_upser" data-source="post: 57675"><p>FEguy, maybe we are suffering from miscomunication. The cost of opening a building is not expensed all at once, but it is expensed, and it does affect net income. If you are only refering to "profit from operations" then I agree with you. But the bottom line number reported to the public is net income. Saying that capital expenditures do not affect profit is inaccurate. </p><p>Example, we buy a plane for 10 million. It depreciates 500,000 a year for 20 years. That 500,000 is expensed each year, right? Depreciation IS an expense and is a direct result of capital expenditures. </p><p> </p><p>(Message edited by air_upser on August 03, 2005)</p></blockquote><p></p>
[QUOTE="air_upser, post: 57675"] FEguy, maybe we are suffering from miscomunication. The cost of opening a building is not expensed all at once, but it is expensed, and it does affect net income. If you are only refering to "profit from operations" then I agree with you. But the bottom line number reported to the public is net income. Saying that capital expenditures do not affect profit is inaccurate. Example, we buy a plane for 10 million. It depreciates 500,000 a year for 20 years. That 500,000 is expensed each year, right? Depreciation IS an expense and is a direct result of capital expenditures. (Message edited by air_upser on August 03, 2005) [/QUOTE]
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profits to management!! WHY??
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