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Cash to monthly cash expenses ratio TearLab Corp. is a health care company that specializes in developing diagnostic devices for eye disease. TearLab reported the following data (in thousands) for three recent years: For Years Ended December 31 Year 3 Year 2 Year 1 Cash and cash equivalents $ 13,838 $16,338 $37,778 Net 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 one decimal 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. 3. Based on (1) and (2), comment on TearLab’s ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 8, Problem 8.9CP
Textbook Problem

Cash to monthly cash expenses ratio

TearLab Corp. is a health care company that specializes in developing diagnostic devices for eye disease. TearLab reported the following data (in thousands) for three recent years:

  For Years Ended December 31
Year 3 Year 2 Year 1
Cash and cash equivalents $ 13,838 $16,338 $37,778
Net cash flows from operations (23,703) (18,172) (13,234)
  1. 1. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one decimal place.
  2. 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.
  3. 3. Based on (1) and (2), comment on TearLab’s ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1.

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Chapter 8 Solutions

Accounting
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