Gamma Company and Delta Company Have Compiled the Following Data

question 28

Essay

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?

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Definitions:

External Inequity

Occurs when employees perceive that their compensation or work conditions are less favorable compared to those in other organizations in the same industry or sector.

Employee Assistance Plans

Employer-sponsored programs designed to help employees deal with personal problems that might adversely impact their work performance, health, and well-being.

Chronic Problems

Issues or conditions that are persistent and long-lasting, often requiring ongoing management or intervention.

Alcohol

A chemical compound, ethyl alcohol or ethanol, commonly found in beverages such as beer, wine, and spirits, and consumed for its psychoactive effects.