quick response needed

Ratio of Cash to Monthly Cash Expenses 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. Year 3 Year 2 Year 1 Operations: Net Income (loss) $(13,716) S(63,909) S(52,281) Net cash flows from operating activities 25,469 (43,216) (70.130) Balance sheet: End of the year cash and cash equivalents 39,029 14,148 11,649 Short-term investments 119,138 59,637 30.924 Financing activities Issued common stock 118,875 62,855 Issued long-term debt 120,000 *Includes various short-term securities that are readily convertible to cash. 1. Compute the monthly cash expenses for Years 1 and 2. Round your answers to the nearest thousand. Monthly Cash Expenses Year 2 thousand Year! thousand 2. Compute the ratio of cash to monthly cash experses for Years 1 and 2. Round your answers to one decimal place Ratio of Cash to Monthly Cash Expenses Year 2 months Year 1 months 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 your answers to one decimal places Ratio of cash to Manthi Cash Expenses Check My Work Previous *Includes various short-term securities that are readily convertible to cash. 1. Compute the monthly cash expenses for Years 1 and 2. Round your answers to the nearest thousand. Monthly Cash Expenses Year 2 thousand Year 1 thousand 2. Compute the ratio of cash to monthly cash expenses for Years 1 and 2. Round your answers to one decimal place. Ratio of Cash to Monthly Cash Expenses Year 2 months Year 1 months 3. Including short-term investments as part of cash and cash equivalents, compute the fatio or cash to monthly cash expenses the facto for Years 1 and 2. Round your answers to one decimal place. Ratio of Cash to Monthly Cash Expenses Year 2 months Year 1 months 4. Based on the calculations above, which of the following statements is incorrect? 1. At the end of Year 1. Pacira could continue to operate for 2.0 months using its cash and cash equivalents. 2. At the end of Year 1, Pacire could continue operations for an additional 5.3 months for a total of 7.3 months 3. During Year 2, Pacire issued long-term debt of $120,000 and reduced its cash burn rate, 4. At the end of Year 2, Pacira could continue to operate for 8.3 months using its cash and cash equivalent. Choose the correct answer 5. In Year 3, Pacira was to generate positive cash flows from operations and ssued 200 tional common stock of S118,875. Pacira, however, still reported a loss of S(13,716) in Year 3. The fact that Pacira was able issue additional common stock and long-term debt in Years 1-3 implies that investors that Paora will earn profit and will continue to generate cash flows from operations in the future