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interesteddad wrote:
>To be fair, the depreciation part is an expense. It's the prorated annual cost of the new phone system the college buys this year or the wireless network. It's just smoothing the cost out over the useful life of the item. The interest is paying for buildings plain and simple. Every college I've looked at is borrowing to build their new science centers because they can borrow the money for less interest than they can earn in endowment returns.<
Yes but, you're confusing (once again) capital expenses with operating expenses. I can assure you that Wesleyan maintains separate balance sheets for both.
More likely, Wesleyan purchases millions and millions of dollars worth of cutting-edge scientific equipment in conjunction with its 24 hour a day, 365 day a year research labs, and allocates their depreciation as an operating expense.
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