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El Dorado Inc. has monthly cash expenses of $168,500. On December 31, the cash balance is $1,415,400. Compute the ratio of cash to monthly cash
El Dorado Inc. has monthly cash expenses of $168,500. On December 31, the cash balance is $1,415,400. Compute the ratio of cash to monthly cash expenses. Cash Balance / Monthly cash expenses 1,415,400 / 168.500 = 8.4 There's enough cash to pay for 8.4 months of expenses. Based on (a), what are the implications for El Dorado Inc.? Please indicate what the answer to B is and why
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
