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How do vehicles in transit at end of quarter affect their Revenue and Cost of Revenue? Are both revenue and cost recognition deferred until Q2, or is just reven
by Denzel 7y ago
How do vehicles in transit at end of quarter affect their Revenue and Cost of Revenue? Are both revenue and cost recognition deferred until Q2, or is just revenue recognition deferred while costs for production are recognized in Q1?
- dragontamer 7y agoI don't know for sure, but I would expect "Inventory" (on the "Assets" page) to include vehicles in transit, while "Revenue" and "Cost of Revenue" would be both deferred to Q2. Q4 2018 Inventory was $3.113 Billion. Q1 2018 Inventory was $3.836 Billion. If the cars were truly paid for already, then the value would still be in the Assets page under "Accounts Receivable": 1.046 Billion in Q1 2019.