Reinforce under Purpose: ORACLE CORPORATION (ORCL) 05/31/10 05/31/11 (5 in millions) $9,914 $16,163 05/31/09 $8,995 Cash and cash equivalents Short-term investments 8,555 12,685 3.629 5,585 6.628 4.430 2,950 Receivables 3,698 1,527 2,763 Other current assets 2,857 1922 Property, plant, equipment, net 31.811 31.504 26.913 Other noncurrent assets $61,578 $73,535 $47416 TOTAL Assets NOTES to the Financial Statements. A typical note regarding accounting policy for Cash, Cash Equivalents, and Short-term Investments reads: Cash, Cash Equivalents, and Short-term Investments. Cash and cash equivalents primarily consist of highly-liquid investments in time deposits and certificates equity securities, time deposits, and government and corporate bonds with original maturities of greater of deposit with original maturities of 3 months or less. Short-term investments, which include marketable than 3 months but less than one year when purchased, are classified as available-for-sale and are recorded at fair value using the specific identification method. Refer to the information presented above to answer the following questions: Q1 Highly-liquid investments with maturities of 3 months or less are classified as (cash and cash equivalents / short-term investments/long-term investments) and investments with maturities of greater than 3 months but less than one year are classified as (cash and cash equivalents/ short-term investments/long-term investments). Q2 Q3 44 Q4 The definition of cash equivalents is reported (on the balance sheet / on the income statement/in the notes to the financial statements). For Oracle, cash and cash equivalents plus short-term investments total $ 5/31/11 that is % of total assets, which seems like a (high/low) percentage. million on One measure of cash flow adequacy is (free cash flow/ the debt ratio / return on sales), which is the amount of cash available from operations after paying for planned investments in property, plant, and equipment and dividends. Can a company ever have too much cash? (Yes/No) Why? Too little cash? (Yes/No) Why?