Cash to Monthly Cash Expenses Ratio

Amicus Therapeutics, Inc., is a biopharmaceutical company thatdevelops drugs for the treatment of various diseases, includingParkinson’s disease. Amicus Therapeutics reported the followingfinancial data (in thousands) for three recent years:

	For Years Ended December 31
	Year 3		Year 2		Year 1
Cash and cash equivalents	$11,760		$21,300		$37,310
Net cash flows from operations	(28,800)		(36,000)		(49,200)

a. Determine the monthly cash expenses for Year3, Year 2, and Year 1 (in thousands).

Year 3:	$ per month
Year 2:	$ per month
Year 1:	$. per month

b. Determine the ratio of cash to monthly cashexpenses for Year 3, Year 2, and Year 1 as of December 31. Round toone decimal place.

Year 3:	months
Year 2:	months
Year 1:	months

c. Based on (a) and (b), which of the followingstatements is correct.

1.	Amicus has been able to support its operations by issuingadditional stock. However, its negative cash flows have increasedfrom Year 1 to Year 3.
2.	Amicus has been able to support its operations generatingpositive cash flows. Its positive cash flows have increased fromYear 1 to Year 3.
3.	Amicus has been able to support its operations generatingpositive cash flows. However the cash flows generated are used topurchase short term investment.