2. Use exhibits 4 and 5 and the associated spreadsheet to prepare a cash flow forecast over the next 30 months (1 page plus excel file). Explain how you developed your forecast. First, I put the assumptions like new facility, set up fees, housing fees, server costs, and growth rate that started at 50% and gradually decreased to 10% by the end of the three-year period from the financial forecast in the case to the exhibit 4. and calculated the salaries per facility. From the case we can know the company growth required employees. Each facility required 20 to 30 full-time employees, and ServerVault wanted to "hire only the best." For each quarter, the company needs to add about 25 people. Assuming that there eight employees hired each month, we can calculate the salary after June. From the Excel sheet the cash ending balance is negative which is $-497,9022 from the September of the year 1. Also, one might hypothesize an issue of equity capital in July 2000 that would raise as little as $5 million or as much as $15 million. That resulted from the NASDAQ index had plummeted 40% between March and June 2000. Then, assuming of 10 million in the external funding in the July 2000 (Cash ows from financing activities). Then calculating the ending cash balance. The cash ow was negative which was $- 2,916,822 from January 2001 until the last month. It was better than the original cash flow balance