Need help w/ equation

Question

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?

Answer 1

          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