The impact of not receiving books from all CDC presses increases our leverage and enables us to keep accounts receivable current.
As soon as MBNA auctions off a pool of receivables it books as revenue the discounted present value of future servicing profits from that portfolio.
The company may also have shifted receivables off its books to make its balance sheet look healthier, according to the center.
Mr. Webster said when he raised concerns about what he thought were improperly booked receivables, Mr. Scrushy said, "we're under certain pressures to make certain numbers," according to Mr. Webster's testimony.
Then, Pavlo says, MCI kept the receivables on its books long after any real hope of collecting had vanished with the resellers themselves, in some cases.
Under this arrangement, Lee Doernberg, a Liquid franchisee in Alpharetta, Ga., wires 80% of the invoice amount to Pierce's bank and sticks those receivables on his books; when the agency pays Doernberg 30 days later, Pierce gets the remaining 20%, minus three percentage points for Doernberg's fee.
Folk admitted in a deposition that this had led to "fudging" the age of receivables on MCI's books.
Heilig has about $1.2 billion in receivables, half on the books, half in the form of unrated asset-backed securities sold to private-placement investors.
Indeed, the average number of days that receivables lounge on the books of small businesses in the U.S. has crept up to 27.6 from 24.5 in 2006, according to data collected by Sageworks on thousands of small businesses in different industries throughout the country.
At the moment, Tyco does not count these claims as a receivable on its books.
