Originally Posted By: hattaresguy
Originally Posted By: strat81
Originally Posted By: hattaresguy
Because most employees are not sophisticated enough to read a profit and loss report and understand it, nor is it their business unless its a publicly traded company.
Again the $900k number is meaningless without further information.
It would be quite interesting if $900k in debt showed up on a P&L.
Ouch that's what I get for typing a response while eating lunch and talking on the phone.
Your heart was in the right place.
And your point is truer than many people realize. I prepare financial statements for a living and the people I prepare them for have little clue what they're reading.
Their only interest is in the income statement and "cash" line of the balance sheet.
Receivables? Payables? A/R Aging? Cash flow statement? No one needs to know that junk!
The president of my former company (telecom, ~500 employees) once asked me, "What is this?" It was a $300k note payable that the company had been paying on for years. He never noticed it.
It's a miracle some of these people know which end of a pen to use to sign a check.