Question

25. (10 pts) My company has been in business for 8 months. You are my partner and CFO so please figure our average burn rate and runway. How much are we burning and how much longer will our money last? Month Starting Balance Ending Balance February $865,000 $850,000 March $850,000 $790,000 April $790,000 $772,000 $772,000 $760,000 June $769,000 $700,000 July $700,000 $675,000 August $675,000 $633,000 September $$633,000 $595,000 May

Answer 1

1.calculation of average Burn Rate = (865000-595000)/ 8 = 33750

2. Calculation of Runway = 595000/ 33750

= 17.6296 or 18 months