Unsolved Mystery ?
What makes up the $ 699,000 in "Notes and other receivable" that was suddenly created in Q4 and appears on DDIM's year end balance sheet ?
The was no such balance at the end of Q3, 1996 than it appears at the end of Q4 (Year End).
ELEVEN Notes on the Audited Financial Statements, and not one of them explains this mystery line item. Great example of "Full Disclosure", hats off to the auditors.
This $ 699,000 is 74% of the reported annual Net Income, and not a word of explanation !
No facts provided so let us speculate: Most likely over ripe Accounts Receivable ( maybe six months to a year old) that could not continue be listed in Accounts Receivable with out making a large allowance for doubtful accounts (allowance at year end was only $2,500, 1/20 of 1% of AR). Presto, a dead beat client signs a note for $699,000, it moves out of Accounts Receivable to Notes. Happy ending, the auditors are happy, DDIM is happy, and the investor are in the dark.
Open to other possible speculation or facts. |
