Essay
Garden Gate, Inc. reported the following data in its August 31 annual report.
Cash and cash equivalents$ 485,625
Cash flow from operations
(630,000)Required
(a) What is the company's "cash burn" per month?
(b) What is the company's ratio of cash to monthly cash expenses?
(c) Interpret the ratio you computed in part
b. What are the implications for Garden Gate, Inc.?
Correct Answer:
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(a) $630,000/12 = $52,500 per month?
(b)...View Answer
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(b)...
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