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Managerial Accounting
consider that a company has reported a cash balance of $4.5 million on their balance sheet. Sounds like a lot of money,
right? Consider what you have learned in chapter 14 – Financial Statement Analysis (Managerial Accounting 6th ed, Kieso K
Weygandt) and address the following two questions:
1) What else do we need to know that helps us understand if this amount of money is enough or not enough and normal or not
normal for this company.
2) What kinds of ratios can be compared that would include cash balances?
