C.B. thanks for the info, this helps a bit. No, I am not a CPA, just an MBA with a bunch of questions to clarify the financials so I can make an informed investment decision. This appears to be a solid and growing company but I want to make sure I am not missing anything and be as thurough as possible.
Ok, so K9 has one large client that has been slow to pay. So that accounts for just over 1/3 of the receivables ($289,298 K9 revenue versus $810,814 AR). If the collection rate is an average of 45 days that means we would collect half of our revenues for the quarter before the report. So 50% of the Labwire revenues equals about $376,500 left over as AR. Still about $145,000 of AR unaccounted for IMO. Perhaps the end of this quarter was a little longer then 45 and more like 60 days which is still not bad. I consider this question closed. Thanks.
One additional question though. Is K9 a wholly owned subsidiary of Labwire? Still trying to account for the meaning of "advances to affilitiates" asset. I saw the link to the K9 website on the Labwire website yesterday but I did not see any mention of ownership. Ideally this would be an entity of Labwire, which would add additional value IMO.
My other question about the Computer Expense is, did the company purchase its own Printing & Reproduction equipment within that $60,000? I noticed that the expense for P&R dropped to zero so perhaps we have internalized this process which means additional saving over the long haul. Rather save the money then make Kinkos richer. I totally understand spending $60,000 for all of this. I work for a telecom company in the IT department so it sounds like we are loading up on techie stuff for the future. Very good deal. My only issue is that there is no increase in Fixed Assets to include this acquisition. That would help to increase the asset base in the financials.
Don't get me wrong. I have nothing against the accountant. Just thinking out loud on ways to improve the appearance of these financials and eliminate the cloudy portions of it.
