2 things,
1. isn't cash in the bank cash in the bank? I mean what is called RD vs what is called SGA or COS seems couldbe a little blurry, but a cash balance is rather empirical is it not
2. when you do cash on hand guestimation, basically starting with cash last Q, then wacking it with loss, then putting back non-cash items ... I'm troubled by the first step, subtracting the loss (or adding the gain) as that is an accounting number not a cash number. It does not discriminate between say booked previously deferred revs and instabook revs, some of their revs are cash, some of them are not.
That is why I take previous Q cash, add revs after adjusting the revs (backing out GM, BASF defrevs e.g.) taking the remaining revs as billings and adding any known large acct (BP).
I don't see how step one, using the GAAP-GL (a cash/non-cash composite) cannot be very fraught with error. Just as Wave punished its GL back in Q1 by deferring, they are now booking revs that have no money behind them (smoothing the holes, but from a CF perspective, a hole).
So what am I missing?
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