Hello guys,
I really need your help with this: I believe there is a disconnect with the way the financial reporting is represented. In perspective,
On 24 June 2020, the turn results were
Asset: $4,660,533,630,818
Cash : $3,966,662,144,187
On 25 June 20, the turn results were
Asset: $4,615,907,033,758
Cash : $3,984,138,972,499
Total Revenue: $23,061,949,371
Total COGS : $ 4,784,120,324
Net Profit : $17,213,766,868
From the above, it shows that Net Asset (including cash) went down (-$44,626,597,060) and although cash went up by $17,476,828,312 the following turn which is the net cash after expenses including taxes, the actual decrease to "Total Asset" was actually -$62,103,425,372 in the overall turn. Converting raw materials into stock shouldn't cause that wide margin (when you factor in the valuation), but when you convert that stock into sale, like in my case, I have almost a 70% GPM & 46.50% NPM, it means on average I sold almost twice the cost price. In perspective, when I sold a unit of product say $1 for $5, the $1 is counted towards COGS and the whatever the net difference after expense and taxes is debited towards cash, in this case, let's say $3.
Yes, although "Raw Materials and Stock" account [as part of the asset account went down by $1], the corresponding cash account went up by $3, which means the asset account should be up by $2. In my own case, I sold $23B and had COGS of $4, after expenses and taxes, I had $17B in cash (referenced upward), granted that COGS in Raw Materials went down by $4B, cash increased which means that asset increases... not decreasing.
Also, inter-company G/L transfers within the same account, in this case the asset account is pretty much not important, because COGS was $4,784,120,324 and I have been seriously bothered how the system thus calculated -$62,103,425,372 or thereabout (considering there was very slight movement between the asset account). So unless Virtonomics is telling me I heavily discounted my products which isn't the case here, there is a problem somewhere.
I would really appreciate a very good explanation because these numbers do not make any sense, and I am at loss for words right now, because it seems like selling inventory and stock and piling it into cash tends to reduce asset which shouldn't be at all. I wish I could upload pics so that it's more visible and it could possibly make more sense. I really appreciate the help. Thank You!
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