Prepaids, Deferred Charges, Intangibles and Other Assets - John M. Leask II CPA/ABV, CVA

Prepaids, Deferred Charges, Intangibles and Other Assets

Warning Signs:

    • Low rates of return on invested assets.
    • Large amounts of idle cash in non-interest bearing accounts.Significant increase in trade payables.

Steps to Improve: INVESTMENTS

  • Generate a reasonable rate of return.
  • Use spare cash to pay down lines of credit.
  • Invest idle cash.
  • Pay down unneeded lines of credit and revolving notes.
  • Eliminate churning by broker.
  • Eliminate high management fees.

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