Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,720 $24,945 Short-term investments (end of year) 8,200 9,420 Operating expenses 60,020 64,325 Depreciation expense 13,300 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year.

The correct answer is 265 Days and 237 Days.

Explanation:

According to the scenario,m the computation of the given data are as follows:

First we calculate the Days cash on hand by using following formula:

Days cash on hand = Cash and cash equivalent ÷ [(operating expenses - Depreciation expense) ÷ 365 ]

So, For the year 20Y8

Days Cash on hand = ( $25,720 + $8,200) ÷ [( $60,020 - $13,300) ÷ 365]

= $33,920 ÷ 128

= 265 days

So, For the year 20Y9

Days Cash on hand = ( $24,945 + $9,420) ÷ [( $64,325 - $11,400) ÷ 365]

= $34,365 ÷ 145

= 237 days

engine assembler, survey reasearcher, auditor

whats the question fjefjejfejfegrgrgrg