Mr.Tanker
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It's also possible to do a little wiggling with your book keeping with that money. On any P&L statement (profit and loss) this is straight profit without cost. Meaning that normally when a retailer sells something for $100, they only really make about $30 net profit, because they owe the manufacturer $70.
But money from a pre-order technically doesn't work that way. This money isn't from a final sale, so there is not manufacture cost to be deducted. Right now it's just all liquid profit. And the company could theoretically use that to increase its own value. "Look at all this money (liquidity) we have in our accounts. No, we don't owe this to anyone (right now). You should should extend us a loan, using this as a sign of how profitable we are." Or "Look at this statement at the end of our fiscal quarter. We exceeded all our goals. Our stock should now go up. (Never mind that all this profit will be counted as a loss after the quarter ends and the pre-orders are converted and this finally counts as a sale."
But money from a pre-order technically doesn't work that way. This money isn't from a final sale, so there is not manufacture cost to be deducted. Right now it's just all liquid profit. And the company could theoretically use that to increase its own value. "Look at all this money (liquidity) we have in our accounts. No, we don't owe this to anyone (right now). You should should extend us a loan, using this as a sign of how profitable we are." Or "Look at this statement at the end of our fiscal quarter. We exceeded all our goals. Our stock should now go up. (Never mind that all this profit will be counted as a loss after the quarter ends and the pre-orders are converted and this finally counts as a sale."