**Days' Cash on Hand** **Financial Statement Data for Years Ending December 31 for Newton Company** - **20Y9:** - Cash (end of year): $24,665 - Short-term investments (end of year): $8,210 - Operating expenses: $59,050 - Depreciation expense: $13,425 - **20Y8:** - Cash (end of year): $24,840 - Short-term investments (end of year): $9,480 - Operating expenses: $64,095 - Depreciation expense: $11,900 **Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year.** - Days’ Cash on Hand - 20Y8: _____ days - 20Y9: _____ days **Explanation:** To calculate the days' cash on hand, use the formula: \[ \text{Days' Cash on Hand} = \frac{\text{Cash + Short-term Investments}}{\text{(Operating Expenses - Depreciation Expense) / 365}} \] This formula helps determine how many days a company can cover its operating expenses using the available cash and short-term investments.

Days' Cash on Hand Financial Statement Data for Years Ending December 31 for Newton Company - 20Y9: - Cash (end of year): $24,665 - Short-term investments (end of year): $8,210 - Operating expenses: $59,050 - Depreciation expense: $13,425 - 20Y8: - Cash (end of year): $24,840 - Short-term investments (end of year): $9,480 - Operating expenses: $64,095 - Depreciation expense: $11,900 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. - Days’ Cash on Hand - 20Y8: _ days - 20Y9: _ days Explanation: To calculate the days' cash on hand, use the formula: \[ \text{Days' Cash on Hand} = \frac{\text{Cash + Short-term Investments}}{\text{(Operating Expenses - Depreciation Expense) / 365}} \] This formula helps determine how many days a company can cover its operating expenses using the available cash and short-term investments.

Name: **Days' Cash on Hand****Financial Statement Data for Years Ending Dec
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Description: **Days' Cash on Hand****Financial Statement Data for Years Ending December 31 for Newton Company**- **20Y9:** - Cash (end of year): $24,665 - Short-term investments (end of year): $8,210 - Operating expenses: $59,050 - Depreciation expense: $13,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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