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Problem - Ratio of cash to monthly cash expenses

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Problem - Ratio of cash to monthly cash expenses

Financial data for Preston Company are shown below.

For Year Ending December 31, 2012

Cash on December 31, 2012 $ 184,800

Cash flow from operations (158,400)

Required -

a. Compute the ratio of cash to monthly cash expenses.

b. Interpret the results computed in (a).

Reference no: EM132681352

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