Ratio of Cash to Monthly Cash Expenses Financial data for Abrams Company follow: For Year Ending December 31 Cash on December 31 $78,750 Cash flow from operations (90,000) a. Compute the ratio of cash to monthly cash expenses. Round your answer to one decimal place. x months b. Interpret the results computed in (a). Abrams Company will need to generate positive cash flow from operations. Feedback Check My Work a. Divide the negative cash flow from operations by 12 to obtain monthly cash expenses. Then calculate a ratio of cash as of year-end to monthly cash expenses. b. This ratio is useful in assessing how long a company can continue without additional financing or generating a positive cash flow. Consider how the elements affect each other.