Cash to Monthly Cash Expenses RatioAmicus 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 3Year 2Year 1Cash 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 monthYear 2:$fill in the blank 2 per monthYear 1:$fill in the blank 3 per monthb. 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 monthsYear 2:fill in the blank 5 monthsYear 1:fill in the blank 6 months

Monthly cash expenses = Net cash flows from operations / 12 months Ratio of cash to monthly cash…

Answered: Amicus Therapeutics, Inc., is a…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.3.3MBA

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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

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