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Saturday, January 10, 2015 8:58:27 PM
LOL, and since we've now proven that in fact inventory is NOT part of COGS
AND COGS is in fact "what you pay for the product you SOLD"
then the statement "when you pay more for your product than you can sell them for" is in fact TRUE for GPDB
and you can understand why it's struggling.
Q.E.D.
If you're still having trouble grasping this, go back to the financial filings, page F-2 and re-read it http://www.otcmarkets.com/financialReportViewer?symbol=GPDB&id=129730 :
Merchandise sales, net of discounts $ 304,108
COST OF SALES 443,085
See how COST OF SALES is bigger than Sales? That's what we mean when we say "they paid more for their product than they can sell them for".
REMEMBER (and this is very important) - what they "pay" for products isn't JUST the wholesale cost - it's all the DIRECT costs related to the sales generated.
Here you go, one more time, "The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs."
http://www.investopedia.com/terms/c/cogs.asp
Hope that clears it up for you.
You're welcome.
AND COGS is in fact "what you pay for the product you SOLD"
then the statement "when you pay more for your product than you can sell them for" is in fact TRUE for GPDB
and you can understand why it's struggling.
Q.E.D.
If you're still having trouble grasping this, go back to the financial filings, page F-2 and re-read it http://www.otcmarkets.com/financialReportViewer?symbol=GPDB&id=129730 :
Merchandise sales, net of discounts $ 304,108
COST OF SALES 443,085
See how COST OF SALES is bigger than Sales? That's what we mean when we say "they paid more for their product than they can sell them for".
REMEMBER (and this is very important) - what they "pay" for products isn't JUST the wholesale cost - it's all the DIRECT costs related to the sales generated.
Here you go, one more time, "The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs."
http://www.investopedia.com/terms/c/cogs.asp
Hope that clears it up for you.
You're welcome.
Competing is intense among humans, and within a group, selfish individuals always win. But in contests between groups, groups of altruists always beat groups of selfish individuals.
E. O. Wilson
