Lately, I have some times to reveiw ibcs's Q1 2005. I find it very fascinated, and interesting.
If you look down on one particular account on the liabilities side, you see, we have $70,554 deferred revenue. If ibcs would recognize the whole $70,554 Deferred revenue in Quarter 2 as revenue, we would have $70,554 revenue. In addition, we haven't included adversiting, sponsorships, and email premium service. So, if you put all the pieces together, we can achieve over $130,000 revenue in Q2, since we know ibcs increases revenue over 60k compared to 27k in Q1 2004. As a result of this recognition, ibcs can achieve net income for Q2 2005.
Let assumed, ibcs did what I suggest(recognize 70K as revenue), ibcs' balance sheet would affect other accounts and result in a stronger balance sheet. How? The effects would be a decreased liabilities, increased assets, and increased shareholder equity value.
This numbers(Factual) I got is based from our recent 10Q. I don't make up number nor would I like. I just used those numbers(refer to F/S) to try to come up with ibcs projected Q2 2005 figure. This is all based on my auditing, and accounting experience. This is just my input for the coming Q2 2005.
Remember, my prediction for Q1 was closed to accuracy regarding Profit, and loss statement.
If anyone(beside the bashers) can present a better scenario for next quarter, I am openned to discusion.
AI
