Ratio of Cash to Monthly Cash Expenses

Financial data for McMasters Company follow:

	For Year Ended December 31
Cash on December 31	$138,780
Cash flow from operations	(308,400)

a. Compute the ratio of cash to monthly cash expenses. Round your answer to one decimal place. fill in the blank 1 months

b. Interpret the results computed in (a).

McMasters Company has sufficient cash.McMasters Company will need to generate positive cash flow from operations. McMasters Company will need to generate negative cash flow from operations.McMasters Company will need to generate positive cash flow from operations.