OccuLogix Inc., is a health care company that specializes in developing diagnostic devices for eye disease. OccuLogix reported the following data (in thousands) for the years ending December 31, 2008, 2007, and 2006:

1. Determine the monthly cash expenses for 2008, 2007, and 2006. Round to one decimal place

2. Determine the ratio of cash to monthly cash expenses as of December 31, 2008, 2007, and 2006. Round to one decimal place

3. Based on (1) and (2), comment on OccuLogix’s ratio of cash to monthly operating expenses for 2008, 2007, and 2006.

Transcribed Image Text:

For Years Ending December 31 2006 2007 2008 $ 2,565 (9,434) Cash and cash equivalents Net cash flows from operations $ 2,236 (17,217) $ 5,741 (14,548)