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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.
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 $17,820 $32,300 Net cash flows from operations (26,400) (32,400) (45,600) a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1 (in thousands) Year 3 per month Year 2: per month Year 1: 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: months Year 2: months Year 1: months c. Based on () and (b), which of the following statements is correct. 1. Amicus has been able to support its operations by issuing additional stock. However, its negative cash flows have increased from Year 1 to Year 3. 2. Amicus has been able to support its operations generating positive cash flows. Its positive cash flows have increased from Year 1 to Year 3. 3. Amicus has been able to support its operations generating positive cash flows. However the cash flows generated are used to purchase short term investment
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