Tougher Company's had the following data for 2018 and 2017: What was the increase or decrease in the ratio of cash to monthly cash expenses in 2018?

Alright. This one's a little tougher. Let's check it out. Tougher company had the following data for 2018 and 2017. So it talks about cash and cash equivalents, cash flows from operations, and cash flow from financing activities. What was the increase or decrease in the ratio of cash to monthly cash expenses in 2018? So remember, when we deal with this ratio, we don't talk about cash flow from financing activities at all. Right. We're talking about those operating activities, those monthly expenses that we have and then the amount of cash that we have on hand. So it's asking for the increase or decrease, we're going to have to calculate the ratio twice. Now remember, when they give you the cash flow from operations, these outflows are for the entire year, right? So we want a month amount. So we're going to have to take these numbers and divide them by 12. So let's do monthly expenses for both 2018 and 2017. So for 2018, we just have to do the 13915, right, the 13,915 and we divide it by 12, right, because there's 12 months, and it tells us that our monthly expenses are 1,159. Well, we'll round it to 1,160. Okay. That will be our monthly expenses for 2018, And in 2017, well, we gotta take the cash flow from operations for 2017, and that was 18,770. And we divide that by 12, and we'll round that to 1,000 564. Right? So we just took the cash flow from operation and divided it by 12 to get to a monthly amount. All right? So now let's do our actual ratio where we're going to take the amount of cash we have and divide it by the monthly cash expenses. So for 2018, 1160 in monthly expenses. So what does that give us? 9353 divided by 1160. It tells us we could stay in month in business for 8.1 months. Okay. So we could stay in business for 8.1 months based on the cash balance we have and our monthly cash expenses. Now let's do the same thing for 2017. So in 2017, we had $4,376 and a 1,564 in monthly expenses, right? That we pulled that from down here, the 2017, monthly expenses. So our cash balance 4376 divided by our monthly expenses for that year, 1564. Well, that year we could only stay in business for 2 point 8 months. Right? So the 2018, 8.1 months, 2017, 2.8 months. So this was an increase, right, from 2017 to 2018. In 2017, it was only 2.8 and now we're up to 8.1. So this was definitely an increase. Let's find out by how much the increase was. 8.1 minuteus 2.8, that that comes out to 5.3 months. Okay? So the increase the increase there was by 5.3 months. So our answer here is A. Now careful, look, they also showed you 8.1 months, but remember, we're looking for the change. Was an increase of only 5.3 months. Right? So it was 2.8 months in 2017 and it went up to 8.1 months. Okay? So let's go ahead and move on to the next video.

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Tougher Company's had the following data for 2018 and 2017:What was the increase or decrease in the ratio of cash to monthly cash expenses in 2018?

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Tougher Company's had the following data for 2018 and 2017:
What was the increase or decrease in the ratio of cash to monthly cash expenses in 2018?