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am i making money?

Hi guys

I am runing a truck business, i need help interpreting my P&L

I run reports for my 1st quarter
in my P&L i am showing a net income of $30K for the 1st quarter, but I am also paying $60 per quarter against truck loans, that means every month i am paying 420 for trucks that i am leasing to own, i know my assets are increasing with each payment, but also
if i have a net income of $30k in the 1st quarter and if i paid $60 in the 1st quarter that are actually increasing my assets
does this mean that i took $30 extra from my saving to cover/increase my assets(I know i tricky)
in other words even i made a net profit of $30k, for me to be able to increase my major assets i had to take $30 from my savings + $30 net profit to increase my assets in $60K

my question, am i making money?????
or maybe an misinterpreting this.

please help

thanks

titorober23

ASKER

maybe i didn't explain it correctly

I rundelivery business, i owe some trucks others and financing(still paying)

in my p&L i am showing $30k net income(understood)

but i am also paying $60k to the finance company for some trucks. when i do this payment my assets grows in $60k; but my question

to cover this payment i am using $30k net income and $30 from my savings to cover this $60k.

am i making money or not?

SOLUTION

John

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titorober23

ASKER

the check that i am wrinting is not n expense, because this is a special deal as to own, any payment goes to the value of the trucks, so is debiting my assets.

ASKER CERTIFIED SOLUTION

John

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SOLUTION

John

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