Replies to post #14098 on Green Parts International Inc (fka GNPT)

[Shepo69]

Your mixing things up as well Joe.
He is profitable for this Q..and that is a vast improvement over the past and is news worthy. In the past Q's his cost of doing business was more then the value of good/products sold. But again this is a theoretical number. Cash flow is a cycle.
Sell the product now, pay the expenses now, book the revenue now, receive the income later.
Use incoming revenue from past receivables to continue the cycle.
The $$ he has coming in now could have been from sales 2 Q's ago. Thus the problem. Money coming in lags money going out, and since they were losing $$ over the past Q's to make up the short fall they have to borrow, but the upside with this Q is .. they are no longer losing $$ they showed a profit so a few months from now when those $$ start coming in they will have $$ to pay back the loans they had to take out now.

and that is accounting and business 101 you all seem to think that this stuff all happens in a week or two. Companies will run payment terms of 30,60,90 days..

And to be fair, they have 700K in receivables to pay there liabilities.
and that will grow and they will have $$ to pay there liabilities if they continue to show a profit.. Plain and simple. Accounting 101 as you put it.

Short term ?? ya it sucks. they have to borrow.. Long term.. that is the question and if the trend continues ( profit) then they have no worries.

[ANIA77]

You should know that quarterly filings are unaudited... you started pulling all kinds of crap hoping that people have no clue..
You sure have agenda here..

Per SEC:
The Form 10-Q includes unaudited financial statements and provides a continuing view of the company's financial position during the year. The report must be filed for each of the first three fiscal quarters of the company's fiscal year.

http://www.sec.gov/answers/form10q.htm

[Shepo69]

And to answer your question.

"why does Asif issue a press release stating he is profitable when they have $1M in ACCOUNTS PAYABLE and owe FEDERAL TAXES!"

Why would he not announce it.??

Its a very positive result for the Q and shows the company is turning things around. I don't get you some times.
sometimes you bring up valid points and you seem intelligent like you know whats going on.. but then you make a post like the one you just did. and its complete negative BS and completely full of nonsense.

For example You say:
They have $2,000.00 IN CASH to pay millions of dollars IN CURRENT LIABILITIES.
Really?? cash changes day to day. That is what he had on the day he did the Q. he also has 700K out there that will be coming in addition to hopefully continued profitable Q's That is what he will use to pay off the debt. That's how it works.

Here it is in simple accounting 101 terms..

Past: Negative cash flow, expenses were more then income, to survive, need to borrow cash to keep things going and weather the storm ( low steal prices ect.) accumulated dept due to negative cash flow.

Current: Made changes to organization. Now cash flow positive. Will use positive cash flow plus accounts receivable to pay off the debt over time.

Simple..
IMOH

[nudie]

Maybe you should first go back to school and learn to read a balance :)