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To: Eddie Kim who wrote (39201)	4/27/1998 4:00:00 PM
From: Chuzzlewit	Respond to of 176387

Eddie, it isn't paradoxical at all. When a company changes its accounting and/or selling practices you see this all the time. The most famous case I can think of is the Scott Chemical case, taught in B-school as an example of what happens with channel stuffing and unstuffing. The point is, don't be fooled by "profits". Profit is an illusion. Learn to follow cash -- you'll get hurt a lot less, because unless a company is outright lying (doubtful, but still possible), you'll be able to cut through a lot of the smoke and mirrors erected by the various incarnations of accrual accounting. TTFN, CTC