Boston Scientific Corporation (BSX) is a competitor of Kips Bay Medical (MBA 5-3). It was organized in 1979 and also develops, produces, and sells medical devices. The following data (in thousands) were adapted from Boston Scientific's recent financial statements.
...............................................................Year 2..................Year1
Net cash flows from operating activities................$1,269.................$1,110
End of the year cash and cash equivalents..................587.....................217
1. Compare the preceding data for Boston Scientific with Kips Bay Medical's data shown in MBA 5-3.
2. Would the computation of the ratio of cash to monthly cash expenses be meaningful for Boston Scientific?