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To: HIA who wrote (19091)	1/25/1999 4:34:00 PM
From: HIA	Respond to of 27307

To clearly follow up on that post here are three examples all assuming no equipment purchase (which is not an expensed loss), no R&D expense (which may or may not be expensed), and so on...just using the parameters that are presented: 1) A company has $400 million in cash at the begin of the first quarter...they make payments of $40 million in loan principal and at the end of the first quarter they have $380 million in cash...that's $20 million in income... 2) A company has $400 million in cash at the begin of the first quarter...they make no loan principal payments and at the end of the first quarter they have $380 million in cash...that's a $20 million loss... 3) A company has $5 million in cash at the begin of the first quarter...they make $500,000 in loan principal payments and at the end of the first quarter they have $500,000 in cash...that's a $4 million loss AND a company with not very much cash...