5. Assume Garden State has determined that its optimal cash balance is 5 percent of sales and that funds in excess of this amount will be invested in marketable securities which, on aver- age, will earn 7 percent interest. Based on your forecasted financial statements, will Garden State be able to invest in marketable securities in 1993 and 1994? If so, what is the amount of excess funds Garden State should invest in marketable securities? Do your financial fore- casts reveal any developing conditions that should be corrected? Ws

5. Assume Garden State has determined that its optimal cash balance is 5 percent of sales and that funds in excess of this amount will be invested in marketable securities which, on average, will earn 7 percent interest. Based on your forecasted financial statements, will Garden State be able to invest in marketable securities in 1993 and 1994 ? If so, what is the amount of excess funds Garden State should invest in marketable securities? Do your financial forecasts reveal any developing conditions that should be corrected? 5. Assume Garden State has determined that its optimal cash balance is 5 percent of sales and that funds in excess of this amount will be invested in marketable securities which, on average, will earn 7 percent interest. Based on your forecasted financial statements, will Garden State be able to invest in marketable securities in 1993 and 1994 ? If so, what is the amount of excess funds Garden State should invest in marketable securities? Do your financial forecasts reveal any developing conditions that should be corrected