FINANCIAL+MANG.-W/ACCESS PRACTICE SET
13th Edition
ISBN: 9781337575614
Author: WARREN
Publisher: CENGAGE L
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Question
Chapter 7, Problem 7.28EX
a.
To determine
Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months.
To compute: Monthly cash expenses for Year 3, Year 2 and Year 1.
b.
To determine
To compute: the ratio of cash to monthly cash expenses.
c.
To determine
To comment: Ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1.
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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 1
Year 3
Year 2
Cash and cash equivalents
$69,485
$24,074
$43,640
Net cash flows from operations
(100,139)
(51,669)
(45,794)
a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1 (in thousands). Round to one decimal place.
Year 3:
per month
Year 2:
per month
per month
Year 1:
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.
months
Year 3:
months
Year 2:
months
Year 1:
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
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.
Chapter 7 Solutions
FINANCIAL+MANG.-W/ACCESS PRACTICE SET
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 7.1APECh. 7 - Internal control elements Identify each of the...Ch. 7 - Prob. 7.2APECh. 7 - Prob. 7.2BPECh. 7 - Prob. 7.3APECh. 7 - Prob. 7.3BPECh. 7 - Prob. 7.4APECh. 7 - Prob. 7.4BPECh. 7 - Prob. 7.5APECh. 7 - Prob. 7.5BPECh. 7 - Sarbanes-Oxley internal control report Using...Ch. 7 - Prob. 7.2EXCh. 7 - Prob. 7.3EXCh. 7 - Prob. 7.4EXCh. 7 - Prob. 7.5EXCh. 7 - Prob. 7.6EXCh. 7 - Prob. 7.7EXCh. 7 - Prob. 7.8EXCh. 7 - Prob. 7.9EXCh. 7 - Prob. 7.10EXCh. 7 - Prob. 7.11EXCh. 7 - Prob. 7.12EXCh. 7 - Prob. 7.13EXCh. 7 - Prob. 7.14EXCh. 7 - Prob. 7.15EXCh. 7 - Prob. 7.16EXCh. 7 - Prob. 7.17EXCh. 7 - Prob. 7.18EXCh. 7 - Prob. 7.19EXCh. 7 - Prob. 7.20EXCh. 7 - Prob. 7.21EXCh. 7 - Prob. 7.22EXCh. 7 - Prob. 7.23EXCh. 7 - Prob. 7.24EXCh. 7 - Variation in cash flows Mattel, Inc., designs,...Ch. 7 - Prob. 7.26EXCh. 7 - Prob. 7.27EXCh. 7 - Prob. 7.28EXCh. 7 - Prob. 7.1APRCh. 7 - Prob. 7.2APRCh. 7 - Prob. 7.3APRCh. 7 - Prob. 7.4APRCh. 7 - Prob. 7.5APRCh. 7 - Prob. 7.1BPRCh. 7 - Prob. 7.2BPRCh. 7 - Prob. 7.3BPRCh. 7 - Prob. 7.4BPRCh. 7 - Prob. 7.5BPRCh. 7 - Ethics and professional conduct in business During...Ch. 7 - Prob. 7.2CPCh. 7 - Prob. 7.3CPCh. 7 - Prob. 7.4CPCh. 7 - Prob. 7.5CPCh. 7 - Prob. 7.7CP
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