Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months. To compute: Monthly cash expenses for Year 3, Year 2 and Year 1.

Question

diagnostic devices for eye disease. TearLab reported the following data (in thousands) for three recent years: Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one decimal place. 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. Based on (1) and (2), comment on TearLab's ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1.

Answer 1

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Chapter 8, Problem 8.9CP

(a)

To determine

Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months.

To compute: Monthly cash expenses for Year 3, Year 2 and Year 1.

(b)

To determine

To compute: the ratio of cash to monthly cash expenses.

(c)

To determine

To comment: Ratio of cash to monthly operating expenses for Year 3, Year 2, and Year.

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diagnostic devices for eye disease. TearLab reported the following data (in thousands) for three recent years: Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one decimal place. 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. Based on (1) and (2), comment on TearLab's ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1.

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