Cash Flow statement: The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows: Cash flows from operating activities Cash Flows from investing activities Cash flows from financing activities (Note: Cash flows from operating activities can be prepared using direct or indirect method) To Calculate: The ratio of cash to monthly cash expense for year 3

Question

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

Answer 1

Question

Chapter 5, Problem 5.2.5MBA

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Calculate:

The ratio of cash to monthly cash expense for year 3

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

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

ABC Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. ABC Turbine report following financial data for a recent year (in thousands ) Net cash flows from operating activities xi(1, 680) Cash and cash equivalents 4,060 a. Determine the monthly cash expenses thousands b. Determine the ratio of cash to monthly cash expenses months . Based on your analysis, do you believe that ABC Turbine will remain in business?