Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Waligore who wrote (39145)	8/9/2000 1:22:52 PM
From: RetiredNow	Respond to of 77397

Well it's not really cash in Cisco's case. They use their stock to buy companies, but of course stock has tangible value, so it results in the specific line items in the balance sheet getting valued based on the purchase price, thus goodwill. So whatever R&D was on the books will get written off to the extent that the company is able to do it, or it will get amortized over the life of the product's usefulness. I'm oversimplifying here I know, so all you CPAs don't bother spamming me. Not everyone wants to know the details and hopefully this high level view is good enough for most.