Replies to post #21828 on DNA Brands Inc (DNAX)

[Ed the Trader]

"Accounts receivable shows money coming in from somewhere."

The term "Accounts Receivable" just means money that they are due because of previous business. In the world of suppliers (like DNA) and receivers (like distributors of DNA products), it is pretty typical to have "Net 30", "Net 60", or "Net 90" payment arrangements.

That means that DNA shipped product to one or more distributors and had not yet received payment but March 31st.

So, DNA may have shipped something at year end 2014 and the distributor was waiting until the last minute to pay on a net 90 payment arrangement. Remember that February is a short month

It also could mean that a distributor was supposed to have paid, and was late or even refusing to pay.

It could also mean that a liquidator, like Big Lots, that took product on consignment which means that they do not have to pay until they sell.