Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,500 $24,250 Short-term investments (end of year) 8,270 9,460 Operating expenses 60,135 63,780 Depreciation expense 13,225 11,400 Determine the days' cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Round all calculations to one decimal place. Days' Cash on Hand 20Y8: days 20Y9: days

Days cash on hand 20Y9 = 262.8 days

Days cash on hand 20Y8 = 234.9 days

Explanation:

The computation of cash on hand is shown below:-

Operating expenses for 20Y9 = Operating expenses - Depreciation expense : 365

= ($60,135 - $13,225) : 365

= 128.5

Operating expenses for 20Y8 = Operating expenses - Depreciation expense : 365

= ($63,780 - $11,400) : 365

= 143.5

Days cash on hand 20Y9 = cash + Short-term investments : Operating expenses for 20Y9

$25,500 + $8,270 : 128.5

= 262.8 days

Days cash on hand 20Y8 = cash + Short-term investments : Operating expenses for 20Y8

= ($24,250 + $9,460) : 143.5

= 234.9 days