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To: BGR who wrote (102410)	2/18/1999 1:21:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Sure, BGR If you check out CPQ's 10-K you will find that they sell off a significant amount of receivables to factors [for those of you unfamiliar with this, factors buy receivables at a discount]. Once the receivable is sold it is no longer CPQ's (obviously). But a factor will not finance a deal into the channel when the channel member has recourse -- which means when the inventory can come back from the channel to the manufacturer because it is unsold and has become obsolete. Factors only buy receivables when there is a firm sale. That's why I infer that a large increase in A/R might imply a significant amount of inventory sitting in the channels. CTC