Actually, basic accounting principals are geared towards maintaining positive cash flow. One of the best ways to do so is by not keeping excess inventory on hand. Anyone that has worked in a manufacturing supervisory/sourcing capacity knows that you get your ass chewed if you're responsible for the company sitting on a store of extra raw materials.olagaton said:The supplies are sunken costs. They've already paid for those, so technically any money they make from items they create and sell using those supplies is a profit from their current state. Basic economics here, guys.