To calculate the days' cash on hand, we first need to determine the total cash available, which includes cash and short-term investments. Then, we use the operating expenses to find the number of days' cash available based on the total expenses incurred.
The formula for days' cash on hand is:
\[ \text{Days' Cash on Hand} = \left( \frac{\text{Cash} + \text{Short-term Investments}}{\text{Total Operating Expenses} / 365} \right) \]
For 20Y8:
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Total Cash and Short-term Investments:
- Cash (end of year) = $24,250
- Short-term investments (end of year) = $9,460
- Total = $24,250 + $9,460 = $33,710
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Total Operating Expenses:
- Operating expenses = $63,780
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Days' Cash on Hand Calculation:
- \[ \text{Days' Cash on Hand} = \left( \frac{33,710}{63,780 / 365} \right) \]
- Calculate operating expenses per day:
- \( \frac{63,780}{365} \approx 174.5 \) (operating expenses per day)
- Now calculate days' cash on hand:
- \[ \text{Days' Cash on Hand} = \left( \frac{33,710}{174.5} \right) \approx 192.5 \]
For 20Y9:
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Total Cash and Short-term Investments:
- Cash (end of year) = $25,500
- Short-term investments (end of year) = $8,270
- Total = $25,500 + $8,270 = $33,770
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Total Operating Expenses:
- Operating expenses = $60,135
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Days' Cash on Hand Calculation:
- \[ \text{Days' Cash on Hand} = \left( \frac{33,770}{60,135 / 365} \right) \]
- Calculate operating expenses per day:
- \( \frac{60,135}{365} \approx 164.4 \) (operating expenses per day)
- Now calculate days' cash on hand:
- \[ \text{Days' Cash on Hand} = \left( \frac{33,770}{164.4} \right) \approx 205.1 \]
Final Results:
- 20Y8 Days' Cash on Hand: 192.5 days
- 20Y9 Days' Cash on Hand: 205.1 days
Fill in the blanks:
- 20Y8: 192.5 days
- 20Y9: 205.1 days
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