How long can your business survive in a monthly zero sale scenario? Part 1

Working Capital analysis  

Sales 100             Sale   0

Expenses  50       Expenses  50

Net income   50    Net Loss -50

Working capital ideally should be cash that is readily available that you earned from previous months of operation.

Ex. You have 500 cash that is not allocated to any purpose. 

500 / 50 monthly expenses without any cash inflow in your business   = you can still operate in 10 months.

How to Check if you are Missing a lot of your inventory ( Internal Audit) Part 2