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April 24th, 2006 | Comments Off
Think Progress e-mails me with a fine example of pork.
The junior Senator from Mississippi seems to have inserted into an aid package a provision that would advance Northrop Grumman up to a half billion dollars towards future contract payments by the government, as an assist in recovering from hurricane damages. They’re insured and are “discussing” the matter with their insurance company. This is just an interest free loan by the taxpayers.
For the non-accountants, the revenue number may be impressive but it does not reflect cash flow. It includes accounts receivable and possibly amortizations of cash received in prior periods but recognized in the current period. Their 4.6% profit in 2005 is modest, to say the least, and again does not reflect cash in hand but just the net of revenues over expenses. Their cash flow statements show a need for some cash. They have about $5 billion in debt on their balance sheet.
It is not unheard of for a vendor and a customer to have a relationship where they provide a little support to eachother in tough times. My objection is the use of my tax dollars. Both Senators from Mississippi are noted for bring home the bacon, but bacon is still pork no matter how you fry it up.
Filed under: Blogging, Commentary, Disasters, Gulf Reconstruction, Original writing, Pork Busters, Tsunami relief
On Y!CN
Star of Hope is a nondenominational Christian organization that equips children across the world with knowledge, physical well-being, spiritual growth and social skills through educational programs and local and international partnerships. Please donate!
Pork Busted
April 24th, 2006 | Comments Off
Think Progress e-mails me with a fine example of pork.
The junior Senator from Mississippi seems to have inserted into an aid package a provision that would advance Northrop Grumman up to a half billion dollars towards future contract payments by the government, as an assist in recovering from hurricane damages. They’re insured and are “discussing” the matter with their insurance company. This is just an interest free loan by the taxpayers.
For the non-accountants, the revenue number may be impressive but it does not reflect cash flow. It includes accounts receivable and possibly amortizations of cash received in prior periods but recognized in the current period. Their 4.6% profit in 2005 is modest, to say the least, and again does not reflect cash in hand but just the net of revenues over expenses. Their cash flow statements show a need for some cash. They have about $5 billion in debt on their balance sheet.
It is not unheard of for a vendor and a customer to have a relationship where they provide a little support to eachother in tough times. My objection is the use of my tax dollars. Both Senators from Mississippi are noted for bring home the bacon, but bacon is still pork no matter how you fry it up.
Filed under: Blogging, Commentary, Disasters, Gulf Reconstruction, Original writing, Pork Busters, Tsunami relief