Farm Store, Inc

question 37

Essay

Farm Store, Inc. reported the following data in its December 31, 2011 annual report.
Required:
(1) What is the company's "cash burn" per month?
(2) What is the company's ratio of cash to monthly cash expenses?
(3) Interpret the ratio you computed in part 2. What are the implications for Farm Store, Inc.

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Definitions:

Interest Rates

The cost of borrowing money or the return on invested funds, typically expressed as a percentage.

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, considering all interest payments and capital gains or losses.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Premium

An amount paid for an insurance policy or an additional cost above the nominal value of a security or financial instrument.