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

To: Joe NYC who wrote (85257)	7/17/2002 8:29:10 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Microchip to buy wafer fab from Fujitsu siliconstrategies.com I wonder if this is going to have any influence on the loan guarantees. Joe

To: Joe NYC who wrote (85257)	7/17/2002 8:29:38 PM
From: qgambit	Read Replies (1) \| Respond to of 275872

<<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>> In this example sales should be $100, cost of sales is $50 and inventory is $50. Cost of sales is $50 because only one chip was sold (which cost 50). Inventory is $50 because only one chip remains in inventory (which cost 50).