In examining a firms financial statements, a portion of which appear below, you notice that the cash balance has grown substantially over the most recent 5-year period.

2014 2015 2016 2017 2018

Cash 1,205.1 1,349.7 1,518.4 1,705.2 1,926.9

Revenue 6,508.2 6,696.9 6,904.5 7,084.1 7,310.8

Net income 807.0 857.2 807.8 850.1 891.9

A. Compute the following figures for each year: profit margin, revenue growth rate, and the growth rate of the cash balance.

B. List two reasons that you would find the growth in cash balance to be potentially problematic.

C. List two good reasons that management could have for letting cash accumulate on the balance sheet. (For B & C you can refer to specific figures or possible general strategies.)