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 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:

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 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

Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning AccountsReceivable Ending AccountsReceivable Sun Health $1,930 $215 $202 Select Medical 2,240 414 353 Required: 1. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. Round your answers to one decimal place. Compare your calculations with those for Tenet Healthcare and LifePoint Hospitals reported in the chapter text. Which of the four companies maintains a higher receivables turnover? 2. How does the receivables turnover ratio reflect the efficiency of management? Discuss factors that affect the receivables turnover ratio.