Your confusing profit with cash on hand.
Profit is what they made this Q after costs of sales and expenses and is a line item on the balance sheet or profit/loss statement of the Q, It is a theoretical number.
Cash is what they have in there hands or in the bank at this given moment.
So to your question, where did the approximately 250K of profit go???
Receivables. Their Receivables are up to 1,041,085 from 395K this time last year. That means they have almost 700K out there owed to them. But they don't have it in there hands to pay off a note that was due this month.
If some how they all of the sudden cleared up all there receivables tomorrow, yes then they would have 700K in cash to pay off debts. But that is not the case. They may not actually receive that 250K for months until who ever they sold the products and materials pays them. Not sure what there terms are for payment.. Most companies run net 30, 60 or even 90 days to make payments.
Make sense ?? again the good part about all this is.. THEY MADE A PROFIT vs a loss. So if they can keep doing that,( making a profit) eventually the will have the cash on hand to pay off the debt. there is unfortunately a delay in Booking a profit on the Q and actually receiving the $$$$ from the customers.
So Don.t get to crazy with the idea that they had 250K laying around to stop these conversions.. They don't
AI
