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

To: Monty Lenard who wrote (46229)	1/6/2001 3:03:30 PM
From: Paul Reuben	Read Replies (1) \| Respond to of 77400

Gary, under accrual accounting building inventory does not change earnings in and of itself. It can affect earnings if the money to build inventory is borrowed funds through interest expense but other than that it is purely a balance sheet/cash flow event. Perhaps depreciation charges are taken on the inventory? Regards,

To: Monty Lenard who wrote (46229)	1/6/2001 8:50:53 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 77400

Monty ; Another message most of the market is missing is missing. The AICPA has recently changed the rules and these companies that have been buying other companies and will no longer have to amortize the purchased goodwill. This was , announced just before Christmas, and is to be retroactive applied & it will affect the reported EPS for this current quarter. While it's all on paper it sure will help the P/Es of companies like CSCO. ----------- Instead of re-stating earnings down ward , as soon as the book keepers finish a rash of re-stating up-wards will likely hit. And taht could do as much or more than the rate cut. Jim