Financial Modelling, Cash Flow Planning and Funding Estimation Assessment
Module 3 • 10 Questions
Question 1 of 10
0 of 10 answered
Kareer Sciences is modeling its monthly cash budget for a single center over its first 6 months of operations. The monthly receipts are: Month 1: $10,000.00; Month 2: $20,000.00; Month 3: $40,000.00; Month 4: $70,000.00; Month 5: $110,000.00; Month 6: $150,000.00. The corresponding monthly payments (salaries, marketing, overheads) are: Month 1: $50,000.00; Month 2: $60,000.00; Month 3: $70,000.00; Month 4: $80,000.00; Month 5: $90,000.00; Month 6: $95,000.00. Assuming a starting cash balance of $0.00 at Month 1 and zero external funding, what is the cash deficit for Month 4, the cumulative cash deficit at Month 4, and the startup's exact Peak Operational Cash Deficit per center?
A
Month 4 Deficit: $10,000.00; Cumulative Month 4: $120,000.00; Peak Operational Deficit: $120,000.00
B
Month 4 Deficit: $10,000.00; Cumulative Month 4: $110,000.00; Peak Operational Deficit: $110,000.00
C
Month 4 Deficit: $20,000.00; Cumulative Month 4: $120,000.00; Peak Operational Deficit: $130,000.00
D
Month 4 Deficit: $10,000.00; Cumulative Month 4: $120,000.00; Peak Operational Deficit: $150,000.00