Compute the ratio of cash to monthly cash expenses round to


Ratio of Cash to Monthly Cash Expenses

Financial data for Hauser Company are shown below.

For Year Ending

December 31, 2016

Cash on December 31, 2016 $64,320

Cash flow from operations (80,400)

a. Compute the ratio of cash to monthly cash expenses. Round to one decimal place. months

b. Interpret the results computed in (a).

The options are: 1) Hauser Co. has sufficient cash for 2017, 2) Hauser Co. will need to generate positive cash flow from operations in 2017, or

3) Hauser Co. will need to generate negative cash flow from operations in 2017

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Accounting Basics: Compute the ratio of cash to monthly cash expenses round to
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