Module 07
Who gets paid, and from where?
Two businesses sit side by side. Money that leaves one arrives at the other — but the total doesn't change. Drag the lease payment to see the cash move between the two panels.
Hypothetical scenario — not Rocky's or 1301's actual financials.
Monthly equipment lease paid to 1301
$2,000
R
Rocky's operating company
Hauling revenue+ $20,000
Minus
Driver wages− $5,000
Fuel− $6,000
Insurance− $1,500
Repairs− $1,500
Operating overhead− $1,000
Equipment lease to 1301− $2,000
Rocky's operating contribution= $3,000
1
1301's equipment business
Equipment lease revenue+ $2,000
Minus
Truck loan payments− $1,400
Assigned asset costs− $300
Required reserves− $300
1301's equipment cash contribution= $0
Combined venture cash — no double-counting
$3,000
Rocky (operating)1301 (equipment)
Combined venture contribution: $3,000 (no double-counting)
As lease ↑, Rocky's contribution
decreases
As lease ↑, 1301's contribution
increases
Combined venture contribution
$3,000
Unchanged if no other cost moves
A high equipment lease price does not create more total money for the combined business. It reallocates cash between the operating and equipment sides.
Intercompany lease transfers are eliminated to avoid double-counting in the combined view.