CGX Energy Inc V.OYL

Explained …

[Frank007]

Frontera is the wallet .... here is a simple eg for you ...you have a car loan 8%.    Get a pay bonus at work .....the car dealer offers a 10% discount to pay out the car loan  so you go ahead ...you are up 10 plus 8% ... 18% ...straight to your bottom line ...get it ...

[a2bman]

What does "Frontera is the wallet" have to do with anything 10 + 8 is 18. not sure how you got 10 + 7.92 is 16, or is that your "New Math" Like I said they don't have enough money to pay off their debt, so where des it come from?  Borrow at todays rates? How did they even come up with the .90 on the dollar - you think they were in discussion with suisse? bahaha Now

[Kelvin]

To tell you the truth I don't get it either Frank. Assets = Claims on assets = Liabilities + Shareholders Equity. The car loan is a liability. The money to pay off the loan comes from your cash account on the asset side of the equal sign.  Say the car loan is $20,000. The dealer is going to reduce the loan by 10% or $2,000 if you pay the loan off now. So you pay it off. Your cash account

[Kelvin]

I think that I've figured it out. Assets decrease by $18,000, liabilities decrease by $20,000 and shareholders equity increases by $2000.

[a2bman]

And the button line?  

[Kelvin]

I don't know a2bman. The 8% reduction in interest payments will show up as an increase in net income all other things staying the same but I'm not sure as to how much of an increase in percentage terms.  The $2000 increase in shareholders equity is also opaque to me. It'll show up as an increase in retained earnings which will increase dividends if the company pays them out. They