2) A venture has the following monthly info: Monthly cash operating expenses: $25,000 Monthly cash sales:...
2) A venture has the following monthly info: Monthly cash operating expenses: $25,000 Monthly cash sales: $20,000 Cash on hand: $50,000
Questions:
-What’s net cash burn per month?
-What’s cash burn rate?
-Describe some ways to reduce net cash burn.
Homework Answers
Net cash burn per month = Cash Outflow - Cash Inflow
Net cash burn per month = 25000 -20000
Net cash burn per month = $5,000
Net Burn Rate = Cash/Monthly cash outflow
Net Burn Rate = 50000/5000
Net Burn Rate = 10 months
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2) A venture has the following monthly info: Monthly cash
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