Pacira Pharmaceuticals Inc. (PCRX) develops, produces, and sells products used in hospitals and surgery centers. The following data (in thousands) were adapted from recent financial statements.

1. Compute the monthly cash expenses for Years 1 and 2. Round to nearest thousand.
2. Compute the ratio of cash to monthly cash expenses for Years 1 and 2. Round to one decimal place.
3. Including short-term investments as part of cash and cash equivalents, compute the ratio of cash to monthly cash expenses for Years 1 and 2. Round to one decimal place.
4. Comment on the results from parts (2) and (3).
5. Comment on Year 3 results.

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Year 3 Year2 Year 1 Operations Net income (loss) Net cash fl ws from operating activities 13,716) $(63,909) $(52,281) 25,469 (43,216) (70,130) Balance sheet: End of the year cash and cash equivalents Short-term investments* 39,029 14,148 11,649 119,138 59,637 30,924 Financing activities Issued common stock Issued long-term debt 118,875 62,855 120,000 Includes various short-term securities that are readily convertible to cash