Re: PAM finances

[krombhol@teclink.net (Paul Krombholz)]

>>Paul wrote:
>>Dave,
>>Let me see if I understand this.  Am I correct that without stock
>>purchases, you would be -1500 in the red after the first issue, -2400 in
>>the red after the second issue, etc. etc, but would stop the increase in
>>loss by around issue #6, and would be only -1350 in the red by issue 8?

Dave replied:
>Gee, I can't find a 1500 anywhere so I have no idea what you are looking at
>or how you are interpreting it.  Based on the numbers above we bleed cash
>for about 8 issues.    We lose $2,350 on the first issue and a further
>$1,800 on the second.
>
Paul:

>>However, with stock purchase, you would be 850 in the black after the first
>>issue, 1750 in the black after the second issue, etc. etc., until by issue
>>8 you would be 9400 in the black.  Am I calculating things right?

Dave:

>No, see losses above.   The stock purchases provide cash to cover the
>losses.   Speaking precisely, they are not income, they are capital.   But
>they cover expenses.

Paul:

>>Also, What are Subscriber$ and what are Subscribers?

Dave:

>Subscribers is NUMBER of subscribers, subscribers$ is income from subscribers.

Paul:

>>What is the cause of the increasing expense for authors at $120/pg?  Do the
>>number of pages devoted to authors go from 20 up to 24 to 28, or does the
>>amount paid per page go up?

Dave:

>Increasing number of editorial pages.  I am willing to sustain further
>losses to make the mag better right away.  But if my board felt very
>differently about this issue I would be flexible.

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Paul    (Current response to above):

If I assume that all columns are filled with the first issue (Some rows got
moved to the right in the email I got), I get expenses of printing, $5000,
postage, $300, Authors, $2400, manager, $1000, editors, $800 for total
expenses of $9,500.  I get  revinues of ads, $4500, Subscriber$, $2550, and
Distributors, $100 for a total of $7150.  The difference is a loss of
-$2350, which agrees with your figure.  The reason I got -$1500 was that I
thought the number in the subscribers column was money.  Now I get that the
losses without counting stock purchases grow from -$2350, issue 1 to
-$10050, issue 8.  Counting stock purchases, everything zeros out until
issue 6, when there is a net gain of $700, which continues unchanged for
issues 7 and 8.  Have I got it right, now?

Paul Krombholz, central Mississippi, where last night we had the first rain
in three weeks.