FlyHigh Tech, an early-stage startup, reports to its investors using a balanced scorecard that is prepared at the end of each quarter. During the first and second quarters of the current year, the company had the following results:

	Quarter 1				Quarter 2
During the quarter:
Revenue	$	150,000			$	180,000
Cost of goods sold		100,000				125,000
Sales and marketing costs		50,000				63,000
General and administrative costs		100,000				110,000
Total market revenue		5,000,000				4,500,000
At the end of the quarter:
Cash	$	2,750,000			$	2,450,000
Number of revenue-generating customers		6,000				7,500
Number of employees		10				15

The following additional information is available:

• All jobs were filled as of the end of each quarter, and during the second quarter of the year FlyHigh hired seven new employees.
• Ten percent of customers from quarter one were lost during the second quarter, however the company increased sales and marketing expenditures by over 20 percent, resulting in a net gain in customers for the quarter.

Required:
Compute the following measures that are included in FlyHigh Tech’s second quarter balanced scorecard:

Answer rating: 100% (QA)

Answer Cash burn rate Starting cash balance ending cash balance Number of months Cash burn rate 2750... View the full answer