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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
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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.arrow_forwardRatio 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. Comment on the results from parts (2) and (3).arrow_forwardProfitability Declines and the Statement of Cash Flows The Bookbarn Inc. is a retail seller of new books in a moderate-sized city. Although initially very successful, The Bookbarns sales volume has declined since the opening of two competing bookstores 2 years ago. The accountant for The Bookbarn prepared the following statement of cash flows at the end of the current year: Your analysis suggests that The Bookbarns net income will continue to decline by $8,000 per year to $18,500 as sales continue to fall. Thereafter, you expect sales to stabilize. Assume that equipment is nearly fully depreciated but that it will be fully serviceable for several years. What will happen to cash flows from operations as depreciation declines?arrow_forward
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