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# Need help w/ equation

Hi, I have the following homework problem:

"Here are a new company’s Revenues and Expenses for its first six months of operations
Revenues Expenses
Month 1 \$9,000 \$18,000
Month 2 \$12,000 \$18,000
Month 3 \$21,000 \$18,000
Month 4 \$24,000 \$28,000
Month 5 \$29,000 \$28,000
Month 6 \$36,000 \$31,000

Please show the company’s cash surplus or shortfall for each of the six months as well as a running total. What is the company’s maximum working capital requirement? In other words, what is the amount that needs to be added to start-up costs to cover anticipated cash shortfalls? This should be the lowest negative number in the running total."

How do I find this? What equation do I use?

### 1 Answer by Expert Tutors

Andrew M. | Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/HonorsMathematics - Algebra a Specialty / F.I....
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Revenue / Expenses   Rev - Exp      Total
--------------------------------------------------
Month 1 \$9,000    \$18,000     -\$9,000     -\$9,000
Month 2 \$12,000  \$18,000     -\$6,000     -\$15,000
Month 3 \$21,000  \$18,000     +\$3,000     -\$12,000
Month 4 \$24,000  \$28,000     -\$4,000     -\$16,000
Month 5 \$29,000  \$28,000     +\$1,000    -\$15,000
Month 6 \$36,000  \$31,000     +\$5,000    -\$10,000

The largest shortfall occurs in month 4 when the running
total is a deficit of \$16,000