Kips Bay Medical Inc. is a medical device company that develops, produces, and sells products used in

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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 financial statements.

Kips Bay Medical Inc. is a medical device company that

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.
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. Kips Bay Medical had negative cash flows from operations for Years 1 and 2, yet cash, cash equivalents, and short-term investments increased. How could this havehappened?

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