Synergy Pharmaceuticals Inc. (SGYPQ) is a biopharmaceutical company focused on the development and commercialization of novel gastrointestinal therapies. The following data (in thousands) were adapted from recent financial statements.

1. Compute the monthly cash expenses for Years 1–3. Round to nearest thousand.

2. Compute the ratio of cash to monthly cash expenses for Years 1–3. Round to one decimal place.

3. Including short-term investments as part of cash and cash equivalents, compute the ratio of cash to monthly cash expenses for Years 1–3. Round to one decimal place.

4. Comment on the results from parts (2) and (3).

5. Synergy Pharmaceuticals issued long-term debt in Year 3. Based upon (2) and (3), would you loan money to Synergy in Year 3?

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Year 3 Year 2 Year 1 Operations: Net income (loss) $(224,338) $(198,607) $(117,500) Net cash flows used in operating activities (212,889) (129,753) (100,989) Balance sheet: End of the year cash and cash equivalents excluding short-term investments 136,986 82,387 61,653 Short-term investments* 50,097 Financing activities: Issued common stock 173,802 89,845 14,268 Issued long-term debt 95,140 *Includes various short-term securities that are readily convertible to cash.