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Re: risk on post# 133530

Friday, 04/18/2014 4:25:06 PM

Friday, April 18, 2014 4:25:06 PM

Post# of 146837
Having "zero" cost of revenues gets around the pesky complication of having those expenses flow through the cashflow statement. If you never really expect to collect on your "invoices" but you show a cost for that revenue...it makes it much much harder to keep the fins looking good for very long. So don't show any...because in reality there is none.

They have a 95% gross margin business for which they can't even collect 0.5% of the billings.

What could possibly be wrong with this picture?

lol.