Question
Prior to beginning work on this assignment, read Chapter 4 on statement of cash flows. Also read the article Reading a Cash Flow Statement. Prior
Prior to beginning work on this assignment, read Chapter 4 on statement of cash flows. Also read the article Reading a Cash Flow Statement.
Prior to the financial recession in the late 2000s, some companies built up significant cash balances. Since that time some companies have continued to increase their cash and liquid investment balances and a discussion followed over the value of accumulating large cash balances. Research the topic and answer the following questions in your write-up. Use the U.S. Securities and Exchange CommissionLinks to an external site. website and the University of Arizona Global Campus Library to find resources to support your statements.
- Analyze the advantages and disadvantages of having a large cash balance.
- Identify two companies with sizable amounts of cash and liquid investments on their balance sheets.
- Explain why a company would continue to increase their cash and liquid investment balances.
- Support your statements by citing at least three credible resources in addition to the course text.
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