Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-27

I would have thought that I understand the difference between sales and cash receipts ... and I thought my posting would have pointed out the difference. Anyway ...

As for pre-payments for orders (or contracts): yes, you would find that in construction business; but I reckon it would be unusual in HLF's line of business. If pre-payments are common, I think the management would had say so on occasion (and I follow HLF, formerly KTD, for some years now.) Still, TTT or T.E.P. would also have said something similar as they have a good understanding of the C4's and speak to management.

I rather think that - say in the matter of an order from Coles - HLF finances the input goods, makes the product, ships the product and issues an invoice (that's the SALES), then after 30 or 60 days HLF receives funds into their accounts from Coles (that's the CASH RECEIPT). So there is a time lag between sales and cash receipts.

Some distributors may have 90 days or more if consumers have changed preferences on certain products, or venues such as gyms face challenging times.

Anyway, just my 5 cents worth.