ARO Liquidation Inc. (fka AROPQ)

[eddy2]

To our followers who have followed us over many years. We are going to touch on a subject of determining bank liability debt from consumer debt on a companies balance sheet and income sheet.

Both debts can be collateralized by the introduction of outstanding shares at par. Both debts are payable prior too equity debt. Equity debt is notable by the capital surplus as well retained earnings. Equity debt can be presold on goodwill the profits on consumer debt.

This goodwill can be downgraded one down grade based on external costs going higher ie: higher interest costs or consumable cost as well as labour costs. The other is due noted by a reduction or cancelation of outstanding debt along and in conjunction with treasury stock.

But this is not always the case when bank debt is introduced. The amount of bank debt in comparison too consumer debt that takes up the outstanding shares that are held for collateral is determined by working backwards from your interest payments consumed by the bank debt taken on.

This is not to say that consumer debt can't act and be treated as bank debt but the difference is there will be associated with this debt a drop in capital surplus to your equity debt that was borrowed on the positive return of the consumer debt. This goes back to the old saying you can't sell something for nothing.


There is one other advantage to having this arrangement of using outstanding shares as collateral for consumer debt as well bank debt.

It forms a base for your consumable material cost as well your labor cost. If you buy a 2x4 and spend two dollars cutting the 2x4 and now have four pieces of 2X4 at 2' long plus any shipping costs as well administration costs your cut up 2x4 would have a negative value attached to it before completion.

So how is this avoided. Well simply enough by selling the product and service prior to the above action taking place by te issuing of a derivative in lue of the product or service being produced.


This process is very complex and not always do they get it right. Many times entering a new market the derivative that holds a value of a equity together will be over sold, under delivered and the equity holder takes it on the chin. No your numbers and what they stand for. Compare the derivative numbers to what your revenue is telling you. If the outstanding shares is higher then your administration and other costs is this a concern for you. Is your costs lower then your derivative costs " outstanding shares owed " is this create a positive or negative position for you.

What is happening in world markets that may change your derivative position that the company didn't for see. What government rules and changes has there been or consumer complaint about a service or product sold and is that complaint relative to your interest based on the time of the event relative to the time the derivative was sold into the market.


The biggest opportunities is gained by the miss understanding of the numbers as well the general educational status of the market that all purchasers of equity plays a big role in. Many shoot from the hip not knowing the numbers. The media are the biggest culprits of this when they try to cover to many topics taking information from individuals that could be miss leading the media.

Do your own DD, study the numbers know what they are saying and telling you. Don't leave anything to chance.