Question

AcelRx Pharmaceuticals, Inc., develops therapies for pain relief for a variety of patients, including cancer and trauma patients. The following data (in thousands) were adapted from recent financial statements.


1. Compute the monthly cash expenses for Years 1 and 2. Round to nearest thousand.
2. Compute the ratio of cash to monthly cash expenses for Years 1 and 2, excluding short-term investments.
3. Including short-term investments as part of cash and cash equivalents, compute the ratio of cash to monthly cash expenses for Years 1 and 2. Round to one decimal place.
4. Comment on the results from parts (2) and (3).
5. AceIRx had negative cash flows from operations for Years 1 and 2, yet cash, cash equivalents, and short-term investments increased from $3,682 ($3,055 + $627) in Year 1 to $35,785 ($7,794 + $27,991) in Year 2. How could this havehappened?


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  • CreatedMarch 11, 2014
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