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la-tsla-fan

05/25/17 2:48 PM

#417420 RE: jeffree #417419

Jeffree, as one layman to another:

I agree that deferred revenues will go to income statements in the future.

BUT they are not a separate pot of cash - they are lumped on the balance sheet into CURRENT CASH/INVESTMENTS.

If some of the current cash is spent (on dividends or whatever else), and some more is required (for litigation, acquisitions or whatever else), there may not be enough in future years (heaven forbid!) to cover regular expenses (like salaries, bonuses, rent, etc.).

That, you will agree, is not a great situation.