ENT 404 · Unit 1 of 6
Startup Financial Statements and Cash Planning
Entrepreneurial Finance, SAFEs and Cap Tables
Start unit · 4 lessons →Learning objectives
- Build a three-statement startup model with explicit assumptions
- Apply "Startup Financial Statements and Cash Planning" to a real venture decision
- Contribute to your Startup financial model deliverable
Unit overview
| # | Lesson | Core idea |
|---|---|---|
| 1 | Foundations of Startup Financial Statements and Cash Planning | Core frameworks for this unit |
| 2 | Key Concepts and Vocabulary in Startup Financial Statements and Cash Planning | Core frameworks for this unit |
| 3 | Frameworks for Analyzing Startup Financial Statements and Cash Planning | Core frameworks for this unit |
| 4 | Startup Financial Statements and Cash Planning: Applied Business Decisions | Core frameworks for this unit |
Complete all four lessons, then finish unit assessments on this page.
Unit assessment
Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.
Exercises
Apply what you learned in this unit with structured practice.
Deliverable
300–500 word analysis document saved to your portfolio under ENT 404.
Rubric
- • Framework applied correctly (not just named)
- • Specific evidence from a real example
- • Clear recommendation with tradeoffs acknowledged
- • Professional writing with source citation
Deliverable
Problem solutions + 150-word reflection in your ENT 404 workbook.
Rubric
- • Attempted all practice items before checking answers
- • Honest reflection on errors
- • Identifies a specific review action
Case analysis
Analyze a case using frameworks from this unit.
Deliverable
2-page case write-up in your portfolio.
Rubric
- • Case facts are accurate and sourced
- • Analysis uses unit frameworks explicitly
- • Recommendation is justified with tradeoffs
- • Risks are specific, not generic
Knowledge quiz
Check your understanding before marking the unit complete.
1. RelayOps has $920,000 cash and net burn of $120,000 per month. Approximately how many months of runway remain if nothing changes?
2. RelayOps collects $96,000 upfront for a twelve-month annual contract on April 1. Under accrual revenue recognition, how much revenue is earned in April alone?
3. Which event increases cash but does NOT increase revenue on the income statement?
4. RelayOps reports gross burn of $185,000 and recognized monthly revenue of $64,000 (eight customers). What is simplified net burn?
5. On RelayOps's December 31 balance sheet, eight annual prepayments create large deferred revenue. What does deferred revenue represent economically?
6. A 13-week cash forecast ending at $412,000 from $920,000 beginning cash implies average quarterly net cash use of approximately:
7. RelayOps's burn multiple in early 2025 is often computed as net burn divided by net new ARR. If net burn is $86,000 and net new ARR is $43,000 per month annualized ($516,000/year), burn multiple is approximately:
8. Which mistake does RelayOps's board correct when it insists on separate cash and accrual views before approving hires?