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Re: edit Re: Ha ha ha***

By: Cactus Flower in ALEA | Recommend this post (0)
Sun, 18 Mar 12 3:56 AM | 69 view(s)
Boardmark this board | The Trust Matrix 		Msg. 06903 of 54959
(This msg. is a reply to 06900 by DigSpace)
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The changes to AP and AR balances in the period are what affects the cash flow. Either balance can go up or down. So they can both increase or reduce the cash balance.

It's pretty much unpredictable whether the contribution of the balance sheet will increase or decrease in any quarter as much of what occurs is within the control of the company's accountant. So the number could easily be a million or two either way.

My guess is that since Wave is a little short of dough, it will pay its bills as late as it can and chase its debtors pretty hard. So I'm leaning towards a contribution to cash from the balance sheet, in which case it may be that Wave's cash balance will be fairly stable through the quarter.

But if the cash ends up at $6.4m or thereabouts (ex-Safend), it isn't a bad place to be, given the scale of the quarterly loss.


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The above is a reply to the following message:
edit Re: Ha ha ha***
By: DigSpace in ALEA
Sun, 18 Mar 12 1:02 AM 		Msg. 06900 of 54959

I really shouldn't be allowed to have an abacus.

I always subtract AP (you owe it) and add AR (its owed you) but this is likely backwards.

AP you owe, but haven't paid, so you still have the money ... so you *add* it, AR you are owed, but haven't received so you subtract it.

Then you depreciate the paint, which confuses me.

edit: my thinking was that last Qs AP you have likely paid during this Q, and last Qs AR you have likely received by now, that's why I did it that way.

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