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| sounds way high, don't know why anyone would compare working capital to gross sales,
I would compare working capital to expenses until crop cash flow comes in.
aka. do you have enough money to pay your expenses until next years's cash flow arrives,
plus whatever operating loan you are approved for
when things were tighter, I had an excel spreadsheet
with a column for each month and income and expenses in the rows,
this allows a look to make sure you don't have a month where you run out of money | |
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preliminary 2019 financial results
