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To: HawaiianGecko

First of all, the italics indicate I was reposting what someone else had posted. Second of all, anything can be made ridiculous by exaggeration. Who said anything about $200 million?


113 posted on 01/06/2006 4:21:29 PM PST by Rocky (Air America: Robbing the poor to feed the Left)
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To: Rocky
 
lol, I wasn't accusing you of anything, you just had the text.

Make the numbers whatever they need to be...  It's still tough to announce that the cost of the flick was 'X' dollars, we sold out theatres for 'Y' dollars (an inflated amount) and our profit is Y-X dollars. 

I've seen a lot of accounting shenanigans in my career but never one that exposes you to fraud and stockholder lawsuits.

Example: Movie truly costs $25M to make and you raise $1 million each from 25 investors. Genuine revenues are $50M for a 100% or $25M return on investment with no monkey business involved. However, you spend another $10M buying tickets from theatres to make it look like the movie is selling more than it is. To do this you had to raise another $10M, $1M each from 10 more shareholders.

Your expenses are now $35M, revenues are now $60M and profit is still $25M. So 35 people get to split $25M instead of 25 people splitting $25M. 

I see lawsuits written all over this scheme.
 


141 posted on 01/06/2006 4:41:20 PM PST by HawaiianGecko (Timing has a lot to do with the outcome of a rain dance.)
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