Reference no: EM132473926

Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment of various diseases, including Parkinson's disease. Amicus Therapeutics reported the following financial data (in thousands) for three recent years:

For Years Ended December 31

                                           Year 3          Year 2                  Year 1

Cash and cash equivalents        $69,485      $24,074             $43,640

Net cash flows from operations  (100,139)    (51,669)            (45,794)

Question a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1 (in thousands). Round to one decimal place.

Year 3: $___ per month

Year 2: $____per month

Year 1: $____per month

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

Year 3:___ months

Year 2:___months

Year 1:___months

Question c. Based on (a) and (b), which of the following statements is correct.

1. Amicus has been able to support its operations by issuing additional stock. However, its negative cash flows have increased from Year 1 to Year 3.

2. Amicus has been able to support its operations generating positive cash flows. Its positive cash flows have increased from Year 1 to Year 3.

3. Amicus has been able to support its operations generating positive cash flows. However the cash flows generated are used to purchase short term investment.