Lab 23 • Financial Analysis & Modeling
Business Financial Model & Cash-Flow Runway Lab
Simulate unit economics, contribution margins, and break-even thresholds: Break-Even = Fixed / (Price - Variable). Anticipate working capital cash shortfalls caused by accounts receivable collection lag.
Gross Revenue
$6,000
120 units @ $50
Break-Even Units
50 units
Contribution: $20/unit
Net Operating Profit
$1,400
After $1,000 monthly overhead
Closing Cash Position
$100
Solvent
Unit Economics & Working Capital Controls
Monthly Sales Volume120 Units
Selling Price per Unit$50
Variable Cost per Unit (COGS)$30
Fixed Monthly Overhead (Rent, Core Team)$1000
Delayed Receivables Collection (30-Day Delay)30%
Monthly Pro-Forma P&L & Cash Flow
Gross Sales Revenue$6000
- Total Variable COGS (120 × $30)-$3600
= Contribution Margin Total$2400
- Fixed Operating Overhead-$1000
= Net Operating Profit (EBIT)$1400
Cash Flow Adjustment
Opening Cash Reserve$500
Collections Received (70% of Rev)+$4200
Cash Outflows (COGS + Overhead)-$4600
Ending Cash Balance$100