Quote:
Originally Posted by mdmull
I am incapable of understanding how Ford can lose 129 million in the quarter but use up 7 BILLION in cash???
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Here's how........make a lot of cars that no one can buy or will buy; add those cars to the balance sheet as 'assets' by transferring 'cash' assets to 'inventory' assets. The use of 'cash' assets (including investment assets) for inventory can be a good thing if that inventory can be sold within a reasonible time. In this case, using billions in 'cash' assets to cover a building inventory that is selling slow
and not making a bottomline profit is a recipe for disaster. When 'cash' is used up, you are basically toast unless someone comes in with more 'cash' in the form of additional stock, etc.