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To: Kirk © who wrote (16169)	6/30/2002 2:20:20 PM
From: Skeeter Bug	Respond to of 42834

kirk, white collar criminals rarely get jail time. you see, those people are very much like people in congress and it his hard to throw your neighbors in jail.

To: Kirk © who wrote (16169)	6/30/2002 7:35:14 PM
From: Boca_PETE	Read Replies (1) \| Respond to of 42834

Kirk: RE: "Moving an expense from long term debt to short term expense doesn't change the cash flow, just the earnings" "Expense" is a classification of disbursed cash or incurred liabilities (short term or long term). "Expenses" (including costs and taxes) are deducted from "Sales and Other Income" to arrive at "Net Income" which is classified as part of "OPERATING CASH FLOW" on the Statement of Cash Flow. My understanding is that WorldComm, reported "CAPITAL EXPENDITURES" (an asset on the balance sheet), instead of correctly reporting "Expense". "CAPITAL EXPENDITURES" on the Statement of Cash Flow are reflected as "INVESTING ACTIVITIES", not "OPERATING CASH FLOW". So WorldComm, inflated Net Income and Operating Cash Flow, and, overstated Capital Expenditures (Investing Activities). People bought WorldComm shares believing there was more earnings and cash flow than there really was. They also saw higher CAPITAL EXPENDITURES which lead them to believe more future profits were implied as a result of higher than actual investing activities. Therein lies the outrageous obfuscation. P