This is an opportunity to add up to 10 points to your grade for Exam 1. Complete answers and a detailed cash flow statement as depicted in exhibit 14-1 are required to receive the full 10 points.

After reading Chapter 14:

1. List and describe your monthly fixed costs and add a cash reserve that covers three months of fixed costs.
2. Create a projected cash flow statement for your business for the first four quarters and the second and third years of operation.
3. Calculate the burn rate for your business.