Tear-Lab Corp. is a health care company that specializes in developing diagnostic devices for eye disease. Tear-Lab reported the following data (in thousands) for three recent years:

1. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one decimal place.
2. Determine the ratio of cash to monthly cash expenses as of December 31 for Year 3, Year 2, and Year 1. Round to one decimal place.
3. Based on (1) and (2), comment on Tear-Lab's ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1?

Transcribed Image Text:

For Years Ended December 31 Year 3 Year 2 Year 1 13,838 16,338 Cash and cash equivalents Net cash flows from operations 37,778 (23,703 (18,172 13,234)