During 2012, Pierport Inc. has monthly cash expenses of $400,000. On December 31, 2012, the cash balance

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During 2012, Pierport Inc. has monthly cash expenses of $400,000. On December 31, 2012, the cash balance is $3,600,000.
a. Compute the ratio of cash to monthly cash expenses.
b. Based on (a), what are the implications for Pierport Inc.,?

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Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Question Posted: Oct 14, 2011 05:25 AM

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During 2012, Pierport Inc. has monthly cash expenses of $400,000. On December 31, 2012, the cash balance

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a 9 months 3600000400000 b At the current rate ...View the full answer

Financial and Managerial Accounting

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