Diane Mills was standing in line at the Statue of Liberty. She wasn't sure why she was drawn to see Lady Liberty. She only knew that she had to get up and stand in that crown.

An unshaven, youngish man with sparkling eyes, wearing deck pants with one green leg and the other purple, had been chattering at her for the past fifteen minutes. He spoke with a vague accent. She'd been trying to ignore him, and by this time was extremely irritated.

"Do you know Sweden?" said the Fool.

She decided to be blunt.

"Buzz off. Take a hike. Put an egg in your shoe and beat it."

But the Fool, having a story on his tongue, and needing someone to speak it to, was not fazed. He turned immediately and affably to the gentleman standing behind him, and began his story. Diane, against her will, listened in to the tale he told:

"In Southwestern Sweden is a region called Småland ("Small land") . In 1815 in the town of Jönköping ("John, coping") , a man named Johan Edvard Lundström was born. After working for a local newspaper he and his younger brother, Carl Frans ("Charles Francis") started a matchmaking company. Johan's innovative mind ("brains") and Carl's business acumen ("shårk") were the ideal combination for success. They bought an estate on the shore of Lake Vättern ("Lake Fätty") and built a factory there. The two brothers worked hard, and step by step their business got better and better.

Fortunately, the safety match had been invented a year before. The head of each match was made to create enough friction and combustion to ensure a bright and steady flame ("törch söng"). The matches would only ignite if the matchstick were rubbed against the striking surface, and were therefore called safety matches.

One night, working by matchlight, the brothers were preparing their books. They were putting together the bålåns sheet. Johan turned to Karl and said, "Karl, why does our bålåns sheet not bålåns? Under Current Assets I've put the cash we invested, the estate here from which we run our factory, our crates of unsold matches, and the money we're owed for sales we've already made.

"Tell me, Karl, which of the following is nöt a Current Asset?

1) Cash invested in a möney market fund.

2) The company-öwned öffice building.

3) Unsöld inventory

4) Accöunts Receivables

The answer is 2) The company-öwned öffice building.

This week in Bust The Tipsters, we're covering The Balance Sheet. Today we begin with Current Assets.

An office building, as strong and sure an asset as there is, is not a current asset. Why not? The phrase "Current Assets" refers to short-term assets which are readily convertible to cash. A building can not be liquidated easily, no matter what an anxious realtor may have to say on the matter.

The other items, from cash in a money market fund, to inventory yet unsold but ready to be shipped, and bills outstanding (accounts receivables) are asset categories which should result in cash over the next few months.

"Funny you should mention that," said the man standing behind the Fool. I know a little something about matches."

Diane Mills grew more irritated with every word, and wished the line would hurry up and move. She had a date with destiny at the top of Lady Liberty. What she did not know was that the Fool would be with her every step of the way.

Tomorrow: The Roaring 20s, Episode 7
The Swedish Match King

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