14. Dawson Company has $60,000 in cash and $30,000 in short-…
14. Dawson Company has $60,000 in cash and $30,000 in short-term investments. Dawson reports annual operating expenses of $450,000. The operating expenses include $12,000 of depreciation expense, which does not require a cash payment. Assume a 365-day year. Use the following formulas: Annual cash operating expenses = Operating expenses − Depreciation expenseDaily cash operating expenses = Annual cash operating expenses ÷ 365Days’ cash on hand = (Cash + Short-term investments) ÷ Daily cash operating expenses How many days’ cash on hand does Dawson Company have? 1. 60 days 2. 75 days 3. 90 days 4. 100 days Instructions to students: Type in the correct number. Do not type in a decimal after inputting the number.
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