As the economy entered the new millennium, Internet companies were competing head to head in many markets with established, traditional retailers for the consumer's dollar. In comparing the financial statements of "e-tailers" relative to traditional retailing firms such as Wal-Mart, one interesting difference is the comparatively large amount of cash held by the Internet firms. Using concepts presented in this chapter, discuss the most plausible explanations for the Internet companies holding such large sums of cash.