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Accounting and Financial Planning for Law Firms

November 2008

The Future Value of Today’s Inventory

By Derek Schutz

Most law firm managers understand intuitively that the value of inventory (both WIP and A/R) degrades over time, but by how much and how quickly? The ability to understand and answer these two questions is the first step in preparing a realistic, forward-looking valuation model — one that can identify opportunities and drive action.

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