Replies to post #73956 on Muscle Pharm Corporation (MSLPQ)

[JimmyJams]

I see a terrible draw down btw Q3 & Q4 of accounts receivable from $23M --> $16M and inventory $24M --> $21M.

While Accts payable only drew down from $28M-->$27M while accrued liabilities went up from $5M-->$7M.

None of that looks good. In fact, looks VERY VERY bad.

Current Assets went from $59M-->$46M while Current Liabilities increased $41M-->$43M.

[Odessa99]

"But in regard to the cash situation, I just don't see where the crisis is. As of December 13, 2014, current assets (Cash + Accounts Receivables + Inventory) amounted to about $39 million, whereas current liabilities (Accounts Payable + Accrued Liabilities) amounted to about $35 million. That means there is a working capital surplus as of Dec 31, 2014. If the lion's share of the inventory they are holding is not obsolete (without seeing a detailed breakdown to crosscheck against the hot selling products, there's no way for me to know), that inventory will be converted into cash and applied to the rather large payables figure."

link:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=111875249

Where do you see this positive working capital position at the end of Q4?

MSLP