Another reason why the Balladonia Track is closed and unmaintained

To me, it looks like they unloaded a lot of unwanted stock left over from the previous owners at fire sale prices and they are yet to pay for the deliveries received this month. Let's see what their profits are after they start paying their invoices.

From an accounting view it's not quite that simple.

Selling the unwanted stock would lead to a profit (since you "bought" it at zero cost and sold it at a non-zero price).

The new stock should be added to the balance sheet when it is delivered - it doesn't affect the profit/loss figures until it is sold (or written off). When an item is sold it is taken off the stock asset figure on the balance sheet and added to sales/cost of sales in the profit/loss figures. You could get in $1 of new stock or $1M of new stock - the mere act of receiving that stock (or paying for it) makes no difference to the profit.

They could also be using the cash accounting method not the accrual method that Peter_MCC discussed. Cash accounting only recognizes stock cost when paid for not when "consumed".

You could be wrong, Greg. Even the manageress at the Balladonia RH supports that "conspiracy" view, and she has no skin in the game. I've also had a Norseman business operator (no names, no pack-drill) tell me the same a couple of years back, and he HAS skin the the game.

But this pre-dates the supermarket deal completely.

As always, your mileage may vary.

Gidday - Fair enough, but at a guess...most punters wouldn't head down that track anyway.

Cheers
Greg

Greg

Anecdotal evidence is that the road is still used. Probably not by a lot of tourists but certainly people
with links to the area.

People who know tell me that the attitude of the shire is "we can't stop people" and it's impossible to police it.

Just don't get stuck out there and after rain that country can be treacherous.

Cheers

Ross

The road is the short cut to Cape Le Grand. I have used it many times (and will continue to do so) as I like to camp on the beach with the drive into Esperence.

Not me and i tow a caravan. Done it twice 2016 and 2020 and just drive to conditions. Off Road Van (Ha Ha)stood up well to the task!