Prior to the financial recession in the late 2000s, some companies had built up significant cash balances. By 2010, discussions began about whether "cash hoarding" by firms was an appropriate activity or if it was hurting the economic recovery. However, during the height of the pandemic, the importance of holding cash reserves became more significant as many companies struggled to maintain liquidity due to the closures.

1. What are the advantages and disadvantages of having a large cash balance? Please describe and provide examples.
2. Using Walgreens, briefly comment on the trends in operating, investing, and financing cash flows over the past two years.
3. Accounting is known as the language of business. Based on the trends in (B)-briefly analyze any aspects of the story of Walgreens (the financial health) of your firm that stands out from your cash flow analysis.