TearLab Corp. is a health care company that specializes in developing diagnostic devices for eye disease. TearLab reported the following data (in thousands) for three recent years
For years ended Dec 31
year 3 year 2 year 1
Cash and Cash equivalents $13,838 $16,338 $37,778
Net cash flows from operations (23,703) (18,172) (13,234)
- Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one decimal place.
- Determine the ratio of cash to monthly cash expenses as of December 31 for Year 3, Year 2, and Year 1. Round to one decimal place.
- Based on (1) and (2), comment on TearLab’s ratio of cash to monthly operating expenses for Year 3, Year 2, and Year 1.