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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hpeace who wrote (13361)	1/13/1998 10:17:00 AM
From: hpeace	Read Replies (2) \| Respond to of 97611

this is cpq's formula for revenue /... total revenue = A-B-C-D A=sales(all countries) B= - credits returns C= - price support and future price drops/sales dealer inventory D= - % times planned dealer inventory by channel- actual inventory Can you explain if this is the formula how transfering inventory to a channel raises the revenue and thus profit. as it moves to channel the A part goes up but it is substracted out in element D and C and accruals for B. So, please explain how it raises revenue. I wrote the computer program for this so I'm not guessing. It's allot more sophisticated from the day I first wrote it since each channel has a planned and actual inventory. Just hae to see your answer on this<gg>