Groceries R Us, Inc

question 153

Essay

Groceries R Us, Inc. reported the following date in it's December 31, 2011 annual report.
Cash and cash equivalents $2,280,000
Cash flow from operations (240,000)
(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 Groceries R Us, Inc.?

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