Hannover House Inc (HHSE)

[Jerry7777]

I am using this reply to clarify where I see MISSED-CON-ceptions as to REVENUE, PROFITS, CASH, and the like by several posters previously. (Please get some "accounting knowledge" under your belts --- and over your belts.)

Let's say that I'm a company and I start with 100.00 cash.

Now I buy "product" on "credit" for 40.00. I still have 100.00 cash, INVENTORY of 40.00 and ACCOUNTS PAYABLE of 40.00.

Now I sell 25.00 of the INVENTORY on "credit" for 50.00:

a. I have SALES (REVENUES) of 50.00, COST OF SALES of 25.00, GROSS PROFIT of 25.00, (unsold) INVENTORY of 15.00, and ACCOUNTS RECEIVABLE of 50.00.

b. I still have 100.00 cash.

Now I pay 15.00 of GENERAL AND ADMINISTRATIVE EXPENSES:

a. My CASH is now 85.00.

b. My NET PROFIT is 10.00.

Some of you relate REVENUES and PROFITS as CASH, and this is NOT correct (for ACCRUAL ACCOUNTING)!

So, from the SEC report which link was posted do NOT forget the following ASSETS:

a. ACCOUNTS RECEIVABLE NET --- 2.7 million.

b. PREPAID PRODUCER ROYALTIES --- 1.9 million.

c. PRODUCER MARKETING RECOUPMENT --- 2.2 million.

d. FILM PRODUCTION INVESTMENTS --- .5 million

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9794837-1133-57074&type=sect&dcn=0001471242-14-000060

Does this help?