Excel required : Forecasting Cash Flow and Burn Rate

Assume you pay cash, no credit
WORKING CAPITAL: break this section into into 1 line for each of the 4 componentsIncrease in Accounts Receivable: Based on giving customers 60 days of creditIncrease in Inventory: Based on keeping 3 months of Inventory on handIncrease in Accounts Payable: Based on your vendors giving you 30 days of creditIncrease in Accrued Payroll: Based on paying your employees every other week
EXIT: sell company for 5x Year 5 EBITDA
Make sure your spreadsheet is formatted to be easily readable. This means: format all numbers using the “,” or “$” command so that commas automatically appear when there are more than 3 digits in length; reduce decimal places to NONE so your sheet isn’t cluttered up with pennies; make sure all numbers are right-aligned so the digits line up in columns; use the Underline command under the last number in a column before each subtotal. This is “best practice” Excel spreadsheet hygiene and is as important in business as good grammar and correct spelling.