TearLab Corp. is a health care company that specializes in developing diagnostic devicesfor eye disease. TearLab reported the following data (in thousands) for three recent years:For Years Ended December 31Year 3Year 2Year 1$ 16,338$ 13,838$ 37,778Cash and cash equivalentsNet cash flows from operations(23,703)(18,172)(13,234)1. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to onedecimal place.2. Determine the ratio of cash to monthly cash expenses as of December 31 for Year 3,Year 2, and Year 1. Round to one decimal place.Based on (1) and (2), comment on TearLab's ratio of cash to monthly operat-3.ing expenses for Year 3, Year 2, and Year 1.

Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash…

Answered: TearLab Corp. is a health care company…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.2.3MBA: Ratio of cash to monthly cash expenses Pacira Pharmaceuticals Inc. (PCRX) Develops, produces, and...

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Ratio of cash to monthly cash expenses Pacira Pharmaceuticals Inc. (PCRX) Develops, produces, and sells products used in hospitals and surgery centers. The following data (in thousands) were adapted from recent financial statements. Including short-term investments as part of cash and cash equivalents, compute the ratio of cash to monthly cash expenses for Years 1 and 2. Round to one decimal place.
Ratio of cash to monthly cash expenses AcelRx Pharmaceuticals, Inc. (ACRX), Develops therapies for pain relief for a variety of patients. including cancer and trauma patients. The following data (in thousands) were adapted from financial statements of a recent year. AceIRx had negative cash flows from operations for the past seven years. yet cash, cash equivalents, and short-term insvstments are $75,350 ($60,038 + $15,312). how could this have happened?
Cash to Monthly Cash Expenses Ratio Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment 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 3 Year 2 Year 1 Cash and cash equivalents $11,880 $19,170 $31,820 Net cash flows from operations (26,400) (32,400) (44,400) a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1 (in thousands). Year 3: $fill in the blank 1 per month Year 2: $fill in the blank 2 per month Year 1: $fill in the blank 3 per month 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. Year 3: fill in the blank 4 months Year 2: fill in the blank 5 months Year 1: fill in the blank 6 months
Using the following information please prepare a statement of cash flow Revenue forServices$75,000.00 Checks written to Vedors$25,000.00 Payment to employees$10,000.00 Cash, beginning of year$50,000.00 Purchase new equipment$35,000.00 Loan Repayment$17,500.00
Maxwell Furniture Center had accounts receivable of $20,000 at the beginning of the year and $54,000 at year-end. Revenue for the year totaled $116,000. How much cash did the business collect from customers? $150,000 $62,000 $116,000 $82,000
Sherwood, Inc., had the following current assets and current liabilities at the end of two recent years: Year 2(in millions) Year 1(in millions) Cash and cash equivalents $4,165 $4,528 Short-term investments, at cost 2,958 8,408 Accounts and notes receivable, net 9,404 8,624 Inventories 1,771 787 Prepaid expenses and other current assets 590 291 Short-term obligations (liabilities) 315 3,342 Accounts payable and other current liabilities 7,453 6,813 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 Current ratio fill in the blank 1 fill in the blank 2 Quick ratio fill in the blank 3 fill in the blank 4
During its first year of operations, Cooper Company bills credit customers $19,800 for services rendered. During the year, Cooper receives $16,500 from all customers, $3,700 of which is received from cash customers. Required: What amount of revenue should be shown on the income statement for the year?
Maxwell Furniture Center had accounts receivable of $20,000 at the beginning of the year and $54,000 at year-end. Revenue for the year totaled $116,000. How much cash did the business collect from customers? a. $150,000 b. $62,000 c. $116,000 d. $82,000
The accounting staff of Wyoming Outfitters, Inc., has assembled the following information for the year ended December 31, 2011:Cash and cash equivalents, Jan. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,800Cash and cash equivalents, Dec. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,800Cash paid to acquire plant assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000Proceeds from short-term borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000Loans made to borrowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000Collections on loans (excluding interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000Interest and dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000Cash received from customers . . . . . . . . . . . . . . . . . .…
Scan House, Inc. prepares financial records during the year on a cash basis. As the newly appointed controller, you have been asked to prepare the annual financial statement on an accrual basis. The following cash flows occurred during the year ended December 31, 2020: Cash receipts:From customers $765,000Interest on note 3,000Loan from a local bank 200,000Total cash receipts $968,000Cash disbursements:Purchase of merchandise $450,000Annual insurance payment 12,000Payment of salaries and wages 250,000Dividends paid to shareholders 25,000Annual rent payment 36,000Total cash disbursements $773,000 Selected balance sheet information: 12/31/19 12/31/20Cash $25,000 $220,000Accounts receivable 62,000 115,000Inventory 80,000 50,000Prepaid insurance 2,500…
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC): Cash received from:Customers $660,000Interest on notes receivable 12,000Collection of notes receivable 100,000Sale of land 40,000Issuance of common stock 200,000Cash paid for:Interest on notes payable 18,000Purchase of equipment 120,000Operating expenses 440,000Dividends to shareholders 30,000 Prepare the cash flows from operating activities section of HHC’s statement of cash flows using the direct method.
On August 1, 2022, "Ferretería El Clavo" decided to establish a fixed cash fund in amount of $20,000, hoping that this amount would be sufficient to cover minor expenses during a week of normal operations.For management of these funds, Mrs. Rosa Rosales was made responsible, and on August 8 she presented an accounting for expenses of first week of operations, details of which are as follows: STATEMENT OF ACCOUNTS NO. 1 FOR THE PERIOD FROM AUGUST, 01 TO AUGUST 06, 2006 Total Received $ 20,000MINUS: Gasoline purchase guides $ 6,850Postag from Mails $ 1,650Transportation, Junior $ 3,200Purchase of Coffee and soft drinks, as per Supermarket receipt $ 6,900 Total expenses $ 18,600Fund balance…

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