Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treat-ment of various diseases, including Parkinson's disease. Amicus Therapeutics reported thefollowing financial data (in thousands) for three recent years:For Years Ended December 31Year 2Year 3Year 1Cash and cash equivalentsNet cash flows from operations$ 69,485$ 24,074$ 43,640(100,139)(45,794)(51,669)a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to onedecimal place.b. Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1as of December 31. Round to one decimal place.Based on (a) and (b), comment on Amicus Therapeutics' ratio of cash toC.monthly operating expenses for Year 3, Year 2, and Year 1.

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Asked Dec 15, 2019
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Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treat-
ment of various diseases, including Parkinson's disease. Amicus Therapeutics reported the
following financial data (in thousands) for three recent years:
For Years Ended December 31
Year 2
Year 3
Year 1
Cash and cash equivalents
Net cash flows from operations
$ 69,485
$ 24,074
$ 43,640
(100,139)
(45,794)
(51,669)
a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one
decimal place.
b. Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1
as of December 31. Round to one decimal place.
Based on (a) and (b), comment on Amicus Therapeutics' ratio of cash to
C.
monthly operating expenses for Year 3, Year 2, and Year 1.
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Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treat- ment of various diseases, including Parkinson's disease. Amicus Therapeutics reported the following financial data (in thousands) for three recent years: For Years Ended December 31 Year 2 Year 3 Year 1 Cash and cash equivalents Net cash flows from operations $ 69,485 $ 24,074 $ 43,640 (100,139) (45,794) (51,669) a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one decimal place. b. Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1 as of December 31. Round to one decimal place. Based on (a) and (b), comment on Amicus Therapeutics' ratio of cash to C. monthly operating expenses for Year 3, Year 2, and Year 1.

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Step 1

a.

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Year 3 Year 2 Year 1 $100,139/12 $51,669/12 $45,794/12 $8,344.90 Compute monthly cash expenses = negative cash flow from operations/ 12 $4,305.80 $3,816

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Step 2

b.

...
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Year 2 Year 3 Year 1 $69,485/$8,344.9 $24,074/$4,305.8 $43,640/$3,816.2 Ratio of monthly cash expenses = Cash and cash equivalents/ Monthly cash expenses 11.4 months 8.3 months 5.6 months

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