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 $ 16,338 $ 13,838 $ 37,778 Cash and cash equivalents 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. Based on (1) and (2), comment on TearLab's ratio of cash to monthly operat- 3. ing expenses for Year 3, Year 2, and Year 1.
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 $ 16,338 $ 13,838 $ 37,778 Cash and cash equivalents 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. Based on (1) and (2), comment on TearLab's ratio of cash to monthly operat- 3. ing expenses for Year 3, Year 2, and Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
$ 16,338
$ 13,838
$ 37,778
Cash and cash equivalents
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.
Based on (1) and (2), comment on TearLab's ratio of cash to monthly operat-
3.
ing expenses for Year 3, Year 2, and Year 1.
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