In this article, we provide a brief overview of the three main financial statements: income statement, balance sheet, and statement of cash flows, and we discuss the major landmarks in each. We discuss financial ratios and other measures of performance that radiologists and CFOs of radiology department can use to detect problems and isolate their root cause.Interest rates are a factor in a number of decisions (more specifically in an inflated economy), including the required rate of return on a new diagnostic imaging center, expansion, refinancing, lease versus buy decisions, and others. We discuss the factors that cause interest rates to rise or fall and what can be done about them.When considering the development of a new diagnostic imaging center, one of the key factors that a financing source, manufacturer-based, independent bank, or other third party, considers is how much cash equity the owners are putting into the project. They want to know this answer for a variety of reasons and will analyze the answer in a few different ways.Diagnostic imaging center equity is usually defined as the amount of cash required to get the center up and running, and until it begins to cash flow positively on its own. The art of determining equity comes from a couple of factors and from the early stages of the development of a project.