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To: Chuzzlewit who wrote (99358)2/15/1999 1:50:00 AM
From: Suresh  Read Replies (1) | Respond to of 176387
 
CTC,

Receivables do matter... if company revenue growth decreases but at the same time receivables growth increases it is a warning sign that all things are not normal. However one quarter does not make the trend but if it continues one needs to be extremely cautious of growth prospects going forward.

If BBRS is wrong about revenue this Q but the receivables increases more than revenue it is not a good sign.

-Suresh



To: Chuzzlewit who wrote (99358)2/15/1999 7:12:00 AM
From: MMW  Read Replies (2) | Respond to of 176387
 
Hi Chuzzlewit,

Thank you for taking time answer my question. I still have some
follow up questions regarding the account receivables.

1)My understanding of receivable is that the goods have been
delivered but the payment is not received. Does the value of the goods
has been counted as revenue?

2)The day sale outstanding is also a measurement of how company doing.
The receivable is part of that calculation, or not?

Thank you again for answering! Accounting is tricky stuff, I do not
completely understand.

Cheers!
Mike