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I did not see any note in the 10-Q that explained the elements of "accrued liabilities." We know they are current, liabilities, so the definition I gave before of "accured expenses" probably applies:

"a current liability in the balance sheet that records accumulated obligations as of the statement date for such items as payroll, employee benefits, insurance premiums, interest due, rent, sales commissions and, in some instances, taxes."

BEAS has a separate item for accrued taxes, so we know taxes are not included in "accrued liabilities," but the other itmes discussed above probably are.

I think it is safe to assume that the "accrued liabilities" can be included in the denominator of the Flow Ratio. Here's how I calculate the Flowie for BEAS as of 4-30-01:

Current Assets 1,149,313 - cash and equivalents 700,091 = 449,222.
Note that I did not subtract the "restricted cash," which is collateral for a lease, I believe. Some people might be inclined to subtract the 9,884 in "short term investments," but I am taking a conservative approach here.

Current Liabilities 423,453 - current portion of notes payable 9,781 = 413,672.

449,222 / 413,672= 1.09 That's a pretty respectable Flowie. The Flowie as of 1-31-01 calculated in the same manner was 0.79. This is not a favorable trend, but it would be better to compare to the balance sheet as of 4-30-00 (i.e. 12 months ago) for a more valid comparison.

Slee
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