Insys Therapeutics Inc. (INYS) is a specialty pharmaceutical company focused on addressing unmet patient needs through novel drug delivery systems. 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. Round to one decimal place.

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).

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Year 2 Year 1 Operations: Net income (loss) $(124,507) $(226,835) Net cash flows used in operating activities Balance sheet: (55,989) (60,662) End of the year cash and cash equivalents excluding short-term investments 31,552 31,999 Short-term investments* 64,126 85,189 Financing activities: Issued common stock 1,048 1,326 "Includes various short-term securities that are readily convertible to cash.