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Cosmo Kramer, CEO of Vanda lay Industries, is considering making a large acquisition of a related company, using a combination of common stock and cash

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Cosmo Kramer, CEO of Vanda lay Industries, is considering making a large acquisition of a related company, using a combination of common stock and cash to complete the transaction. Mr. Kramer knows very little about finance, accounting and financial statements. He is concerned that the Cash balance on the Balance Sheet may not be sufficient to complete the deal. Mr. Kramer asks his CFO, George Constanza (a high school dropout who got the CFO job by falsifying his resume) if the Company has any other way to make this acquisition work. Constanza takes a quick look at the Balance Sheet and points out that there are millions of dollars in Retained Earnings, more than enough to complete the transaction. Kramer goes forward with his plans. Jerry Seinfeld, Chairman of the Board, is mystified how Kramer and Constanza ever attained their important positions. He hires you, who recently completed Professor Brennan's Financial Statement Analysis Course, to advise the Board about the situation and answer the question," Does the Company have the cash to complete the transaction?" (assume the Cash on the Balance Sheet is insufficient). What would you tell the Board

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