Hi Kens,No problemo- happy to oblige when and where I can. To...

Hi Kens,

No problemo- happy to oblige when and where I can. To your specific questions-:

Question 1
"That payments received in Q2 were not banked because the factory was shut down and were subsequently included with Q3 receipts."

No, every sales payment that was received in that particular reporting period was banked.Because of the sales lag,the Q2 would have included the RECEIPTS from sales covering the following months or part thereof- half of
Aug07,Sep07, Oct07 and half of Nov07. What ever sales that were generated in these months would have been included in Q2 4c report.

Although the plant was shut down during the Q2 period, (more specifically during Nov 07 and Dec07),the real impact of this was felt in Q3 since the RECEIPTS of sales in this quarter included the months of half Nov 07, Dec07, Jan 08 and half of Feb 08.


Question 2

"Sales booked in Q3 sales were $282K and debtors at the end of period were $225K.Thatleaves $57K which will be part of Q3 customer receipts reporting and and leaves $109K[$166K-$57K] for all other Q3 debtor receipts some of which you are saying are Q2 receipts"

The sales of $282K were those sales generated in the period of Jan 1 '08 to March 31 08 inclusive. Debtors were $225K. These represent customers that had bought in the Q3 period but as yet had not paid. Therefore, the company was not in receipt of any payment relating to those specific sales and that amount would not have been included in the cashflow statement of Q3. But it would have been listed in the quarterly sales figure!


Question3

"Receipts were light due to debtors not having to pay for say February shipments until probably Q4."

In part correct but more attributed to the fact that as reflected by the size of the current debtors, the month of March and part of Feb 08 were obvioulsy strong. The sales booked in this period will ultimately be reflected in receipts or paid invoices in Q4. This is what GSW has been saying with authority. In addition Kens, the full impact of the developing and growing distribution network would not have impacted in Q2 or even in the early part of Q3. I suspect that this is why we may be about to see a very strong Q4. The current inventory level of $105,000 would further support that notion of March08, April08 and May08 being very strong months!

ciao