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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (11141)	5/5/1999 1:08:00 AM
From: Roman	Respond to of 18016

Zbyslaw - cost of goods sold are cost of goods sold, if they are not sold - they are not in the income statement because they are not a cost at that point of time Roman

To: zbyslaw owczarczyk who wrote (11141)	5/5/1999 8:43:00 AM
From: Stephen Lux	Respond to of 18016

Thanks Zbyslaw, That's right, their work in progress inventories are probably at very high levels. This takes us back to the operations management discussions going on.

To: zbyslaw owczarczyk who wrote (11141)	5/5/1999 9:11:00 AM
From: WTSherman	Respond to of 18016

<However the same product sold next quarter will have near 100% margins. You dod not count cost of production twice. In Q4 margins will be lower, b/c of that, and higher in the following quarters.< Z, I sure hope that NN's accounting folks know more about product cost accounting than you do. Your explanation above is accurate as far as cash flow goes. It is totally inaccurate as far as product margin and cost of goods. The materials acquired to produce goods are paid for, but, generally not accounted for until the product is sold(this is what is known as inventory), those materials are still listed as assets until they are sold.