Leo Village provides water to its residents. It accounts for this business-type activity in an enterprise fund. Use the following information, as appropriate, to compute Leo Village's number of days' cash on hand: Cash - $2,000,000; Cash equivalents - $1,000,000; Short-term investments $400,000; Accounts receivable - $500,000; Operating expenses other than depreciation - $6,000,000; Operating expenses - depreciation $1,000,000.

Question

Quizplus · Accepted Answer

The formula for calculating the number of days' cash on hand is:
 11ee3ffc_f3a7_9a71_93d2_4f49996958c4_TBCB1000_00 The answer is 206.83 days, which rounds to 207 days.

Leo Village Provides Water to Its Residents