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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (85253)	7/17/2002 8:06:40 PM
From: Robohogs	Respond to of 275872

Prepaid expenses do not affect current quarter but only hit income statement when they are amortized or used. This is positive from a cash position however because they have already spent some of the money for more expenses. Anyone have a real quote? Jon

To: Petz who wrote (85253)	7/17/2002 8:15:49 PM
From: qgambit	Respond to of 275872

<<The only positive thing to say about expenses is that prepaid expenses went up 16M, about 2% of total expenses.>> Prepaid expenses are assets that have NOT been expensed yet. So this increase was not included in the current income statement.

To: Petz who wrote (85253)	7/17/2002 8:18:57 PM
From: Joe NYC	Read Replies (2) \| Respond to of 275872

Petz, Take a look at Jon's post: Message 17754058 What is the definition of cost of sales? I think it is generally cost, forget sales. Suppose you make 1 chip at cost of $50 and sell it for $100. Now suppose you make another one but don't sell it, but place it in inventory as finished product. Now, we have sales of $100, cost of sales of $100 (2*50) and increased Inventory asset by $100. But if the inventory number is not real (it can be shifted any way you want by packaging or not packaging die), then you also lose the meaning of cost of sales. Did AMD make only as many parts as they sold, or did they make more. AMD could have made 8M units (after "selling" 8M in Q1, it would be appropriate), sold 6M units, but since the inventory number is fudged, we don't know the real cost of sales. Anyway, just a theory. Joe