FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Margins

[Mick67]

I agree with your updated comment.  And if correct that those supplies are on hand as the webinar stated I am encouraged the team is moving in the right direction. Shorter lead times relative to competition is real advantage with inflation and supply chain issues globally. And believe if you are planning a massive ramp in production that your handle on costs must be improving. Must be path to fix before growing imo.  All this seems positive but remain grounded that its a gradual turn not a hockey stick and Q3 should show iimprovement and more in Q4.  That would give a strong outlook for following years. 


quote=kulewater]Okay.. I understand what you are saying. Effecitevely balance sheet item vs income statement item. I do agree the supplies are on hand. Thanks for the civil discourse. :)

kulewater wrote: Just so I understand your position.

How do you account for the added inventory without assigning a value?

With all due respect Kulewater -gwalker is correct. When you purchase materials they get put in inventory not expensed. As you build the BGX unit, items such as direct labour and overhead associated with the unit get put in inventory.  When you sell the unit they all flow through cost of sales and are expensed.  Sorry if i misinterpreted what yor saying but understand that buying materials is not an expense. Just uses cash up front.

 

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