Tool 05 · the lab · Read: Ch. 16 — Financial Diligence & Quality of Earnings

Balance-sheet checker

Enter the prior-year and current-year balance sheet rows you have. We check the accounting identity (A = L + E) and run eight red-flag heuristics against the deltas.

Prior year ($M)

Cash

Accounts receivable

Inventory

Capitalised software / intangibles

Goodwill

Other assets

Accounts payable

Short-term debt

Long-term debt

Deferred revenue

Related-party debt

Other liabilities

Total equity

Revenue (P&L) — prior

COGS — prior

Total R&D — prior

Monthly burn — prior

Reported runway (months)

Current year ($M)