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Strategies & Market Trends : BFT: Will the tulip craze ever break down?

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To: Pancho Villa who wrote (263)4/8/1998 4:25:00 AM
From: John Tais  Read Replies (1) of 650
 
What's the difference between the "provision for doubtful receivables"
and the "allowance for doubtful receivables"? One seems to be for the
income statement and one for the balance sheet. Why is the "provision"
increasing while the "allowance" is decreasing?

Is this because they're saying, we're financing more memberships, but
the receivables are "higher quality" due to EFT?

How does it benefit them by drawing down the "allowance" for doubtful
receivables on the balance sheet?

Bottom line: their cash flow is a lot more negative than you would
expect from adding back their depreciation to their book loss.
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