Ann: 5 Million USD in product orders received, page-60

Learning accounting jargon.
Reread Dec HY report.
# PL statement:
RFT produced a small profit of 256Ks , but has ($348Ks ) in change in inventories of finished goods & work in progress....What that means is that it produced more stuff during the HY that will be sold in the future , the cost of which is included as expense.....Had it sold the products during the reporting period, profit for the Dec HY would have more than doubled.....Obviously this profit will show up in the FY report.
# Balance sheet:
Cash 2.16m....Less than PCP......But strong debtor position with net receivables $650Ks higher than PCP.
# Operating Cash Flow:
Small negative operating CF of ($189Ks)....This is explained by the large net receivables....Had RFT collected all receivables in the reporting period , its operating CF would have been >$450Ks.
# Working capital:
Very strong...Around $5m.
Working Capital Ratio >4....More than healthy....Some say that the ideal working capital ratio is around 2....Which means that RFT has excess capacity that is not optimally utilized.
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This is not a ramp...Only numbers.