PowerLinx Inc (PWNX)

[gotinearly]

tchock, i am pleased with your straight responses. I do concur with your answers. the first ? regarding partial shippment w/deposit is a good one. Depending on the terms of the purchase order (assume it is ship when ready in any lot amount).

The deposit would be recorded as a liability until first 300 is shipped, then transfered to revenues based on an amount equal to the appropriate revenue on 300 units sold with the remainder staying as a liability until more units were shipped. assuming the remaing 700 units were shipped in 2001 the balance of the entire purchase order would then be recognized as revenue.

JMHO

I am not giving advice, just stating my opinion. If this were a factual situation (not hypothetical) you should consult your own compensated accounting advisor.