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 : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: clix who wrote (28104)	4/27/2005 4:39:25 PM
From: Pam	Read Replies (1) \| Respond to of 60323

Hi Clix, I guess I was trying to figure out how the above amounts will manifest themselves in Income / BS statements, and whether net margins would be affected. As Bargain Hunter has pointed out, the BS items will actually reduce cash. I am ignorant of basic accounting, and I don't understand what an off-balnce-sheet "Fab Capital Investment" is, and what it can do to an income statement. Very briefly, treat the OBS as a "private" loan which is not reflected on the BS but the interest payments on that loan can be shown as expenses and over time Sandisk will pay back that loan from Operating CFs or when the company has additional funds raised from any form of financing activities. When the loan is fully paid-up, there will be an asset on the BS and an equivalent reduction in Cash balance. The Income Statement will have very minimal effect as the income will be reduced by the amount of interest expense on the borrowed funds so eps may go down a very small amount. Hope that helps. -Pam