Sunday, November 19, 2006

How do you know if you have "excess" cash available for financing new equipment, leasehold improvements, etc.?

Look at your Current Assets and ask yourself how easily they can be converted into cash. If your Current Assets are two times greater than your Current Liabilities, then this would be defined as "excess" cash in your practice that could be used to finance new equipment, leasehold improvements, etc.

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