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

To: rhet0ric who wrote (14140)	5/29/1998 4:37:00 PM
From: Jonathan Bird	Read Replies (2) \| Respond to of 213177

Unfortunately, everything you are saying is wrong. But that's ok because it is complicated. 'Accounts Receivable' are computers that were delivered for which Apple has not yet received payment, ie sales on credit. The asset 'Finished Goods' are computers which Apple has lying around that nobody has bought, or have not been delivered. The ordering of computers that have not been delivered or paid for will not effect the financial statements. The pre-payment for computers not yet delivered would(assuming it ever occurred) show up as an equal amount of cash and unearned revenue(liability) on the balance sheet. The pre-purchase of computers on credit that have not yet been delivered would(assuming it ever occurred) show up as an equal amount of receivables and unearned revenue(liability) on the balance sheet. Cash basis accounting is only suitable for use by small private companies and individuals. Accrual accounting is required of all publicly traded companies. Yuck, too much of this kind of talk grosses me out. Now I don't even want to talking about convertible debs. Jon Bird