A worked BU 423 Unit 6 startup cost and runway sheet: one time costs split from monthly burn, twelve months of cash, and the month the money runs out. Searches like "bu 423 unit 6 assignment example", "bu423 unit 6 sample" and "bu 423 unit 6 example" land here.
What a finished BU 423 Unit 6 startup cost and runway sheet looks like
The sheet is a cash table with short passages holding it together. It opens with two lists kept apart: the one time costs of opening, each with a basis beside it, and the recurring monthly costs, each with the unit driving it. A note states which figures came from published price lists and which belong to the composite case. The cash table follows, twelve columns of months, with opening balance, receipts, payments and closing balance on every one. Receipts come from a stated sales assumption rather than from the revenue the venture hopes for. Two scenarios are then run across the same table, a slower one and a faster one, and the closing balance line is what changes. The document ends with the month cash goes negative in each scenario and what that gap would cost to cover.
How a BU 423 Unit 6 example is structured
One time and recurring costs are separated before anything is added, because a single list mixes a machine bought once with rent owed every month and produces a total describing nothing. Cash is modeled rather than profit, since a venture with signed customers and unpaid invoices closes anyway, and the receipts line is dated by when money lands rather than when a sale is made. The sales assumption is stated in words above the table so a reader can attack it directly. Scenarios run across an identical cost structure, which keeps the comparison about revenue timing rather than about two different ventures. The runway month is read off the table rather than computed separately. Funding need closes the sheet, expressed as the amount that would carry the venture past that month.
One time costs kept apart from monthly
Opening costs and recurring costs sit in separate lists, because adding them together produces a total that answers no question anyone asked.
Cash modeled, not profit
The table tracks money in and out by the month it moves, since a profitable venture with unpaid invoices still runs out of cash.
Receipts dated by payment, not by sale
Revenue enters the table when the customer pays rather than when the order is taken, which is where most sheets overstate early months.
The sales assumption written above the table
One sentence states how fast customers are assumed to arrive, so a reader can dispute the assumption instead of the arithmetic.
Two scenarios over one cost base
A slower and a faster case run through identical costs, keeping the comparison about timing rather than about two unrelated ventures.
The empty month named
The close reads the month the closing balance turns negative straight off the table and states what covering that gap would take.
Where marks go in BU 423 Unit 6
Sheets lose marks by budgeting profit. A table showing revenue in the month a sale is agreed, with costs paid on the same schedule, hides the gap that actually closes new ventures. Owner pay left out entirely makes the burn look survivable and is the omission markers check first. Costs quoted with no basis, particularly rent and equipment, cannot be verified by anyone. A single optimistic scenario with no slower case leaves the runway figure meaningless. Totals that do not carry forward, where a closing balance fails to become the next opening balance, break every month after the error. Sheets stopping at the total rather than naming the month cash runs out have skipped the point. Payroll figures, lease terms or supplier pricing from an employer stay out.
Get a BU 423 Unit 6 example written to your instructions
Give us the Unit 6 instructions from your BU 423 classroom, the rubric and any cost template or figures the assignment supplies. We build a custom example that splits one time from recurring costs, models cash rather than profit, runs two sales scenarios over one cost base and names the runway month. First custom sample free, back in 24 to 48 hours.
BU 423 Unit 6 questions, answered
Should the sheet show profit or cash?
Cash, unless the instructions ask for both. Profit says whether the venture works eventually and cash says whether it survives until then, and this unit is about survival. If your assignment wants a projected income statement as well, build the cash table first and derive the statement from it, since the timing differences are easier to explain in that order.
How long should the projection run?
Follow the instructions, and where they are open, twelve months of monthly detail is the usual choice for an undergraduate venture. Longer horizons invite figures nobody can defend. If the venture obviously will not break even inside a year, say that plainly, extend only the summary line, and keep the monthly detail where the assumptions are still arguable.
Do I include the founder's salary?
Include something and label it. A venture whose sheet shows no owner pay is either subsidized by savings, which is a real assumption worth writing down, or it is understating its burn. State which. Markers notice this line because it is the easiest way to make a runway look longer than the venture would actually experience.