Steve wrote: "As a whole, this year ending August 31st Corel has a profit of US$13 million, this can be calculated from cash reserves at the end of Nov 96 was only US$7 million. So they are making some profit."
Your Accounting teacher must have been schooled by Cowpland.
The only possible way that your comment would be true is with an accounting model that does not accrue or defer, match revenues to expenses, or follow any GAAP in the modern world. I think there is a chinese restaurant down the road from me that uses this system.
Sorry for poking fun at your comment, after all I am a Bean Counter with a warped sense of humour. (Ask Vanni or Leo)
The truth is there are many factors that contribute to a change in cash position. The largest factors are Changes in Accounts Payables, Receivables, Inventory, Disposition and Capitalization of Assets and Yes of course Profits or in Corels Case Losses. (Have I missed a few?)
I always look at Profit/Loss with some skepticism. After all, I have been known to be somewhat Creative, when required, in my past. This is a fact of life and a necessity in business.
Mr. Bean |
