Replies to post #7119 on Jammin Java Corp (JAMN)

[Brophtron]

It doesn't matter that it says best, more, most or anything of the sort. He clearly doesn't understand what gross margins are.

Plus if you are paid up front that helps margins because they dont get hurt by unpaid items.

NO; that is completely incorrect. When you get paid has nothing to do with margins.

Again, margins are revenues less cost of goods sold.

That's it. When you get paid does not help or hurt the margins; they are what they are. Getting paid helps with cash flow and changes one asset (accounts receivable) into another asset (cash), but it does not change any items on the income statement.

Unpaid items are accounts receivable; they're still an asset, even though they're not cash.

It seems no matter what they say you would have a negative spin on it anyway.

It's not spin. Rohan got it wrong, plain and simple.

[236T568]

actually, no

up front payments tend to have big discounts from price in order to induce the up front payment, hence lower gross margins

Plus if you are paid up front that helps margins because they dont get hurt by unpaid items