During 2010, Tempo Inc has monthly cash expenses of $115,000. On December 31, 2010, their cash balance is $1,437,500. The ratio of cash to monthly cash expenses is

Question

Quizplus · Accepted Answer

To find the ratio of cash to monthly cash expenses, we divide the cash balance by the total cash expenses for the year:

$1,437,500 ÷ ($115,000/month x 12 months/year) = 10

Therefore, the ratio of cash to monthly cash expenses is 10, which corresponds to answer choice B.

During 2010, Tempo Inc Has Monthly Cash Expenses of $115,000