Pacira Pharmaceuticals Inc. develops, produces, and sells products used in hospitals and surgery centers. The following data
Question:
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.
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. Pacira had negative cash flows from operations for Years 1 and 2, yet cash, cash equivalents, and short-term investments increased from $27,447 in Year 1 to $77,452 ($47,467 + $29,985) in Year 2. How could this havehappened?
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