Peaches, Inc. reported the following data in it's December 31, 2011 annual report:
Cash and cash equivalents $460,000
Cash flow from operations (240,000)
Required:
(1) What is the company's "cash burn" per month?
(2) What is the company's ratio of cash to monthly cash expenses?

Question

Quizplus · Accepted Answer

The Answer of Peaches, Inc. reported the following data in it's December 31, 2011 annual report:
Cash and cash equivalents $460,000
Cash flow from operations (240,000)
Required:
(1) What is the company's "cash burn" per month?
(2) What is the company's ratio of cash to monthly cash expenses?