Peaches, Inc

question 23

Essay

Peaches, Inc. reported the following data in it's December 31, 2011 annual report:
Cash and cash equivalents $460,000
Cash flow from operations (240,000)
Required:
(1) What is the company's "cash burn" per month?
(2) What is the company's ratio of cash to monthly cash expenses?

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Definitions:

Secure Sense

A feeling of confidence and trust in one's capacity to explore the environment, feel safe, and be protected.

Power-related Words

Language or terminology that evokes, addresses, or relates to the dynamics of control, authority, influence, or force.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions.

Displaced Aggression

A psychological phenomenon where negative emotions caused by one source are redirected and taken out on a different, often unrelated target.