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Interesting. Are you saying that this inventory can still be listed under Cash & Equivalents (1,986M on 28/5/2011) on balance sheet? Or is it under Accounts Receivable (3,772M)? Does Total inventory (943M) then has phones that are not yet shipped?

(Values are from latest Balance Sheet data http://www.google.com/finance?q=NASDAQ:RIMM&fstype=ii )

I've recently started to learn to read financials more carefully, but all these nuances of corporate accounting can make it a fruitless effort.




If you check your link's "Balance Sheet" tab, you'll see inventory listed under Assets as "Total Inventory". It would most certainly not be listed as Cash & Equivalents.


Yeah, I was curious because it doesn't sound likely that shipped-but-not-sold phones would be listed under Cash & Equivalents (which is ~ $2B). But if his math about value of shipped phones ($3B) is approximately correct, then it doesn't fit under Total Inventory (<$1B) either, so it must be under Receivables (~3-4B), right?


No. A receivable is money owed to the company (compare to accounts payable, money the company owes to someone else).




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