Which of the following statements is TRUE regarding cash metric-based analysis? If a company reports positive cash flows

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Which Of The Following Statements Is True Regarding Cash Metric Based Analysis If A Company Reports Positive Cash Flows 1 (46.26 KiB) Viewed 10 times

Which of the following statements is TRUE regarding cash metric-based analysis? If a company reports positive cash flows from operating activities, it is said to have a monthly cash burn. Including cash equivalents in the calculation of the ratio of cash to monthly cash expenses typically reduces the ratio. The ratio of cash to monthly cash expenses indicates how long a company could operate on its available cash. Beyond the time period indicated by the ratio of cash to monthly cash expenses, a company would always report a net loss on its income statement. For purposes of cash metric-based analysis, the monthly cash expenses are calculated by taking total cash expenses reported on the income statement and dividing by 12.