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Recently Boeing has maintained a cash balance of over $10 billion. At an annual inflation rate of about 2 percent, does cash have more or

Recently Boeing has maintained a cash balance of over $10 billion. At an annual inflation rate of about 2 percent, does cash have more or less purchasing power at the end of a given year than at the beginning? By how much? Is such a gain or loss reflected on the companys financial statements? Why or why not? Why would Boeing want to keep its cash balance as low as possible? Why doesnt the company reduce its cash balance to zero?

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