During 2016, El Dorado Inc. has monthly cash expenses of $168,500. On December 31, 2016, the cash balance is $1,415,400. a. Compute the ratio of cash to monthly cash expenses. b. Based on (a), what...

During 2016, El Dorado Inc. has monthly cash expenses of $168,500. On December 31, 2016, the cash balance is $1,415,400.

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

b. Based on (a), what are the implications for El Dorado Inc.?

Capstone Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. Capstone Turbine reported the following financial data for a recent year (in thousands):

a. Determine the monthly cash expenses. Round to one decimal place.

b. Determine the ratio of cash to monthly cash expenses. Round to one decimal place.

c. Based on your analysis, do you believe that Capstone Turbine will remain in business?