Boston Scientific Corporation is a competitor of Kips Bay Medical (FA 5-3). It was organized in 1979 and also develops, produces, and sells medical devices. The following data (in thousands) were adapted from Boston Scientifics€™ recent financial statements.

1. Compare the preceding data for Boston Scientific with Kips Bay Medical€™s data shown in FA 5-3.
2. Would the computation of the ratio of cash to monthly cash expenses be meaningful for Boston Scientific?
In FA 5-3, Kips Bay Medical Inc. is a medical device company that develops, produces, and sells products used in coronary surgery. The following data (in thousands) were adapted from recent financialstatements.

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Year 2 Year 1 Net cash flows from operating activities $(8,105) End of the year cash and cash equivalents 6211 Short-term investments Indludes various short-term securities that are readily convertible to cash. $(4,378) 3,548 236 2,957