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Garden Gate,Inc

Question 145

Essay

Garden Gate,Inc.reported the following data in its August 31 annual report.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.? Garden Gate,Inc.reported the following data in its August 31 annual report.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 = $52,500 per month​
(b)$...

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