Replies to post #145 on Green PolkaDot, Inc. (GPDB)

[Toxic Avenger]

You're going to have to understand what your reading if you want to make this work. Picking out random words as "explanations" isn't cutting it.

"LOL, and since we've now proven that in fact inventory is NOT part of COGS". Remaining inventory is subtracted (another word for "deducted"), hence it "is NOT part of COGS", as you keep misstating.

Inventory build up is NOT part of the Sales - COGS equation. It is NOT the reason that the company spends more for $1 of sales than $1 in direct costs and most importantly, spending more than $1 for every $1 of sale is a BAD thing.
And when you do as GPDB did and spend $1.40 in DIRECT COSTS for every $1 in sales you were able to generate, then spend another $2 in overhead for every $1 in sales, it's REALLY BAD. ;-)

See, $3.40 in expense for every $1 in sales - not considered "good" by investors.

ROFLMAO.