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Click to watch the Tell Me More Learning Objective 8 video and then answer the questions below. 1. The ratio of cash to monthly cash
Click to watch the Tell Me More Learning Objective 8 video and then answer the questions below. 1. The ratio of cash to monthly cash expenses is computed as a. cash as of year-end divided by monthly cash expenses b. beginning cash balance divided by ending cash balance c. cash and cash equivalents divided by cash as of year-end d. None of these choices are correct. 2. Financial data for a company is provided below: Cash, end of year, $500,000 Estimation of yearly cash expenses from negative cash flows from operations on statement of cash flows, $(155,000) Cash, beginning of year, $400,000 Accounts receivable, $10,000 Inventory, $20,000 Net Income for the year How many months will the company be able to continue without positive cash flows or additional financing (round to nearest whole month)? a. 12 months b. 25 months c. 39 months d. 16 months . . . . . .
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