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Re: Manti post# 358680

Wednesday, 11/25/2015 10:28:01 AM

Wednesday, November 25, 2015 10:28:01 AM

Post# of 375420
If I may conjecture just one more thought in there if you don't mind my friend.

The management takes there pay in the way of equity and cash.

So in lite of that the administration and sales fees is a part of the capital surplus equation, the opposite of ( depreciation) is depreciation without the brackets appreciation this is also part of the capital surplus in addition retained earnings is also part of the capital surplus that is receivables owed by the customer.

When you remove those that I mentioned above you have inventory that is on the shelf and its remaining value to its share holders.


Now is that value a deficit or a surplus depends on two factors future sales and the products margins as well the cost of having the product on the shelf (Treasury stock)


Treasury Stock is capital in the form of equity a deficit if you like or debt that is owed to retail as well wholesaler of the product.

How is this arranged by the offering of credit for the purchase of the product and because the capital cost is waved it is redirected into a capital cost " treasury stock"