RE:RE:Q2 Not as bad as many of you think"Don't know why the doom and gloom crowd doesn't take a positive spin on the dramatic spike in receivables."
Why would they? Receivables are not additional Revenue. Receivables are money that is owed to you. It has already been booked as part of the Revenue but just has not yet been paid to you. It is not extra money. On the other hand Payables are money that you owe to other people but you have not paid out.
Note in the following. For the 6 month period, the money owed to you increased by $9 Million but the money you owed to other people increased by over $11.5 Million. Even if those people paid you and you used that money to pay the people you owe, you would still be over $2.5 Million dollars deeper in the hole than you were in Dec. I guess a fair portion of it makes sense. If people do not pay you the money they owe you then it is pretty difficult to in turn pay the money that you owe to other people, so a great portion of the increase in payables was due to the increase in receivables but definitely not all of it.
Now how the Receivables increased by more than the Revenues for the quarter is quite a mystery to me. You would think if you did not receive one penny of the revenues earned in the quarter then those 2 numbers at worst would be equal. I could not find the answer in the MD&A so if some one knows the answer to that for sure then I would love to hear it. The only reasons I can think of are they fronted their own money to get a contract, or previously recorded received moneys bounced and were put back into receivables for this quarter.
SELECTCORE LIMITED
Condensed Consolidated Statements of Financial Position (Unaudited)
(In Canadian dollars)
Jun30 March 31 December 31,
2013 2013 2012
Accounts receivable 12,098,000 3,021,000 3,025,000
Acc payable & acc liab 20,330,000 8,021,000 8,725,000
Gross Revenues 8,833,000 8,205,000 10,982,000