Jan 27 2012 08:01 AM
Good questions. Please find answers below -
#1. You are right - cheese, olive oil etc are COGS, but where do the COGS come from ? They are stored as inventory (balance sheet) in store houses before they are used as COGS (Income Statement). Once you buy something, it is stored as an asset until the day you use it.
#2. Excellent observation - I should have clarified this in the video. When current loan is Rs.1 Lakh and non-current loan is Rs.25 lacs, then total loan is Rs.26 lacs. Everytime a portion of the non-current loan becomes current, that portion is subtracted from the non-current line item.
#3. Yes, they are different. Its best to watch the module on "Advanced Balance Sheet" to understand this better.
Hope this was helpful.