Given the following information for the year ended December 31, what is the ratio of cash to monthly cash expenses? Negative cash flow from operations $(540) Cash and cash equivalents as of year-end. a. 10.0
b. 12.0
c. 14.4
d. None of these choices are correct.

d. None of these choices are correct.

Explanation:

For computation of ratio of cash to monthly cash expenses first we need to find out the monthly cash expenses which is shown below:-

Monthly Cash Expenses = Negative cash Flow ÷ Number of Months in a year

= $540 ÷ 12

= $45

The ratio of Cash To Monthly Cash Expenses = Cash and cash equivalents at Year End ÷ Monthly Cash Expenses

= $495 ÷ $45

= 11

Therefore for computing the ratio of Cash To Monthly Cash Expenses we simply applied the above formula.

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: