Question
El Dorado Inc. has monthly cash expenses of $82,000. On December 31, the cash balance is $492,000. a. Compute the ratio of cash to monthly
El Dorado Inc. has monthly cash expenses of $82,000. On December 31, the cash balance is $492,000.
a. Compute the ratio of cash to monthly cash expenses. ____ 1 months
b. At the current rate of operations, El Dorado has a specific number of months of cash remaining. El Dorado should:
Do nothing.Begin planning on selling assets in order to remain in business.Recalculate the ratio each month.Restructure its operations in order to remain in business.Begin planning on raising additional financing or restructure its operations in order to remain in business.
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