Gamma Company and Delta Company have compiled the following data as of the end of the current fiscal year: Depreciation (one of the operating expenses) for Gamma was $35,000, and for Delta was $65,000.
(1) Calculate days' cash on hand for Gamma Company and for Delta Company. (Round your answer to one decimal place.)(2) Which company has the better liquidity position based on your calculation?

Question

Gamma Company and Delta Company have compiled the following data as of the end of the current fiscal year:  Depreciation (one of the operating expenses) for Gamma was $35,000, and for Delta was $65,000.​
(1) Calculate days' cash on hand for Gamma Company and for Delta Company. (Round your answer to one decimal place.)(2) Which company has the better liquidity position based on your calculation?

Quizplus · Accepted Answer

The Answer of Gamma Company and Delta Company have compiled the following data as of the end of the current fiscal year:  Depreciation (one of the operating expenses) for Gamma was $35,000, and for Delta was $65,000.​
(1) Calculate days' cash on hand for Gamma Company and for Delta Company. (Round your answer to one decimal place.)(2) Which company has the better liquidity position based on your calculation?

Gamma Company and Delta Company Have Compiled the Following Data