Library › Finance AI › FP&A and financial analysts

Compute the minimum cash buffer and the excess over it

  • For FP&A and financial analysts
  • You practice Setting limits and rules
  • Time about 5 minutes
  • Level Beginner

About this exercise

You're reporting cash against the policy buffer. Write a prompt for plain text with lines starting "Monthly cash costs:", "Minimum buffer:", "Cash on hand:" and "Excess over buffer:", each with the math. The buffer is the number of months of cash costs set by policy, using cash costs only. Facts only: no suggestions on how to use the excess. Under 60 words. No bullets or numbering.

Common mistakes when you ask AI for this

  • Using total costs. The AI uses $450,000 and a $900,000 buffer. Try: Say: "Cash costs exclude depreciation."
  • Discussing the competitor. The AI comments on whether the excess could fund an acquisition. Try: Add: "Do not mention acquisitions, the CEO or uses of the excess."
  • Wrong months. The AI uses 3 months. Try: Add: "Buffer = 2 x monthly cash costs."
  • Markdown extras. The AI adds bold labels, headings and a closing note. Try: Say: "Plain text, no bold. Output only the lines asked for."
  • Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each line short.

What a strong prompt includes

  • Names the four lines
  • Removes non-cash costs
  • Gives the 2-month rule
  • Bans uses
  • Caps length

Practice this now ↑

Related exercises