When a poster points out to YOU directly that your CEO has been lying to you, then, YES, trust the message board poster:
Posted by: enzymesarecool Date: Monday, July 20, 2009 12:58:17 PM
In reply to: lazyfaire who wrote msg# 163642 Post # of 177402
Lazy,
Here are some errors:
Q2 sales are $504,000 - you do know it is a 1 in 1000 shot that the sales number would be an even thousand right? This is not a company reporting in (000) - Very convenient number to come up with and highly unlikely to be true.
Q3 sales were a triple ZERO again (7,975,000) - buy a lottery ticket Jared because two quarters in a row of even thousand dollar sales is incredibly lucky - to be exact it is a one in a million chance that these numbers would be true (1000 times 1000 - the odds of each event happening separately)
Q4 COGS is another triple ZERO number at 425,000 - can I rub your belly Jared cause you've got luck written all over you
And before you say that he is just rounding the numbers, these are the only numbers that he has control over that are rounded. In each of these quarters, where sales are triple 000, COGS is non-ZERO to the decimal and where COGS is 000, sales is non-ZERO to the decimal.
Let's not even get into the fact that his gross margin on similar sales numbers went from 19% in Q1 on 630,000 sales (my rounding) to 27% (no rounding) in Q2 on lower sales at 504,000.
Q3 monster sales of 7,975,000 generated a record gross margin of 45% and then in Q4 when sales fell back to earth at 832,571 you would expect gross margin to retreat but it kept going to 49%
Q4 receivables went up by more than Q4 sales - absolutely impossible unless there was $400,000 of bounced cheques in Q4.
Any auditor will see very quickly that what was presented to shareholders up to this point seems to have been completely made up - the odds of the numbers presented being true are astronomical.
So the auditor will likely walk away from the engagement before it is over and then end up suing Jared for payment. Smart auditor will ask for cash upfront (if they are reading this)
