Help ASAP...(Money)

[Starz]

I started my airline recently and i realized that for every month that passes my bank balance goes down i don't know if it normal but i need someone to explain how the finance sheet works. Currrently it says that my projected profit for the month is €13,716,919 but i am almost certain that by the end of the month my bank balance would just decrease. my finance sheet is below:


Finances   
                               To Date (This Month)   Projected Totals (For End of Month)
Ticket Revenue (Daily)         €1,819,298                     €24,620,076
Misc. Revenue (Daily)           €0                                   €0
Lease Revenue (Monthly)   €0                                   €0
Total Revenue              €1,819,298                         €24,620,076
Fuel Expense (Daily)               €268,779                            €3,134,807
Staff Expense (Daily)        €38,000                           €441,458
Misc. Expense (Daily)       €155,795                           €1,973,941
Gate Rental Fees (Monthly)           €2,650,000                      €2,650,000
Maintenance Fees (Monthly)       €2,702,951                       €2,702,951
Lease Expenses (Monthly)        €0                                   €0
Total Costs                    €5,815,525                     €10,903,157
Profit/Loss                     €-3,996,227                   €13,716,919

And this is my airline: Airline Mogul - See my airline

[A380YURY]

Well, as for me this finance sheet says that everything is OK... You spend ~11mln eur every month and get ~24.6mln eur at the same time... Maybe you was confused by the fact the gate leasing costs(2.6mln) and maintenance costs (2.7 mln) are paid at the end of the month, resulting in loss of money at the end (24th) of every month? Try to re-check it by writing down the balance at any random day of the month (for example, may the 5th) and compare it to the numbers at the next month (june the 5th). The difference has to be positive, if not - it means the something else is wrong...
Please, correct me if I've said something wrong.

[Starz]

OH i now understand because last month i had ~5.7mln and when the first of this month came it went down to like ~300,000 because the monthly expenses were taken away. so if i am not mistaken after this month if no changes are made im supposed to have at least 8.4mln or the shown ~13.7mln or simply just my bank balance - monthly expenses(gate leases and maintenance cost)

[dktc]

so if i am not mistaken after this month if no changes are made im supposed to have at least 8.4mln or the shown ~13.7mln or simply just my bank balance - monthly expenses(gate leases and maintenance cost)

I don't think you quite grasp the concept yet... give me some time, I need to prep the classnotes for Accounting 101 in AM University

[Starz]

Thanks would help alot.

[dktc]

Detailed Cash-flow statement example...



Basically, that is how the cash balance is calculated.

In the finance page you posted above
- the left column is a month-to-date figure (ie. start from month change, and add all the day changes up till that day, and then summarize)
- and the right column is the project for the whole month, assuming nothing changes from that point on (ie. use left column, and add all the day changes in that month that has not happened, then summarize)

The finance page is simply a (projected) cash-flow, assuming nothing changes for the whole month. Therefore, you would not see the profit/loss as your cash balance.

Note: In accrual accounting, the "profit/loss" would technically be "net cash-flow", but since AM is using cash-base accounting, it is interchangable.

[Starz]

Thanks alot im gonna make a spreadsheet and start updating it at the start of next month.