• Alex Petrin

Sudden and Unexplainable Increase in Cash Flow in My Financial Model

Q: Could you please help me to figure out the sudden increase in my cash flow which I cannot explain? I'm starting in the Year 2017 with 250,000 Euros and I'm investing most of that in Intangible assets. That is why you see 29,000 left for month January until May. However, during 2017 I am not generating any revenues. Therefore, I cannot explain why I get a 250,000 increase for the rest of Year 2017 when I look at the Cash Levels report. In my model, the assumption is to start generating revenues in March 2018 (see my screen shot below):

A: The increase in cash is because you’ve entered a seed capital investment of 250,000 in Jun 2017.

You can also see the investment under Capitalization assumptions where you've entered a seed capital investment to take place in Month 6 of your plan (June 2017):

And you can see the impact of the investment on cash in the monthly details under Financing Activities on the Cash Flow Statement:

You can also see the impact of that investment on your ownership on the Cap Table report.

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