Selected Financial Statement Data for Two Years Ended December 31

question 25

Multiple Choice

Selected financial statement data for two years ended December 31 for Carey Co. follow. Assets are reported at their year-end value. $$\begin{array} { l r c } & \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 32,500 & \$ 30,100 \\\text { Short-term investments } & 9,400 & 10,200 \\\text { Operating expenses } & 72,800 & 70,400 \\\text { Depreciation expense } & 12,000 & 11,200\end{array}$$
What is the days' cash on hand for each year?

• A) Year 2: 251.5; Year 1: 248.5
• B) Year 2: 210.1; Year 1: 208.9
• C) Year 2: 258.1; Year 1: 265.1
• D) Year 2: 215.6; Year 1: 222.9

Interpret balance of payments data and its significance for a country's economic health.

Describe the impact of trade deficits and surpluses on a nation's economy.

Understand the difference between fixed and flexible exchange rate systems and their impacts on international trade.

Identify the roles of different accounts within a nation's balance of payments, including the current account, capital account, and financial account.

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