Why doesn’t the company reduce its cash balance to zero

Reference no: EM131411282

Recently Boeing has maintained a cash balance of over $6 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 company's financial statements? Why or why not? Why would Boeing want to keep its cash balance as low as possible? Why doesn't the company reduce its cash balance to zero?

Reference no: EM131411282

Questions Cloud

Explore the website for an organization comparable to yours : Explore the website for an organization comparable to yours. Determine the possible metrics for each quadrant for the organization. Explore the website for an organization not comparable to yours.

Discuss about the employee development : Evaluate the following criteria, in order of importance to you, in regard to the workplace: material wealth, success, career satisfaction, and work-life. Determine whether or not you believe there is a way to balance them. Provide two suggestions ..

Examine some of the causes and symptoms of employee burnout : Go to the Society for Human Resource Management's (SHRM) Website and review the information regarding HR certifications. You can also go to the HR Certification Institute's Website and review information regarding HR certifications. Next, examine ..

Provided two article from leading academic business journals : For this assignment you are provided two articles from leading academic business journals. In a 2-3 page, double-spaced paper, please identify the research question, hypothesis, and research methods for each article.

Why doesn’t the company reduce its cash balance to zero : Why would Boeing want to keep its cash balance as low as possible? Why doesn't the company reduce its cash balance to zero?

What biases are built into these three research study design : What biases are built into these three research study designs? Explain your answer. Provide specific examples.Describe the bias likely in this design.Explain your reasons for thinking this bias is likely in this design.Give examples of studies where ..

Identify and address potential threats to external validity : How does each researcher identify and address potential threats to external validity? How does each researcher identify and account for variables? How does each researcher identify and avoid threats to internal validity?

What principles of financial accounting would be involved : Assume that Kathy proceeds with her decisions. According to generally accepted accounting principles, at what dollar amount would each asset be carried on Yeagley's balance sheet? What principles of financial accounting would be involved?

How each item on the checklist helps evaluate a study : Your checklist should not have more than 20 items. Avoid repetition.Explain how each item on the checklist helps evaluate a study.The checklist should be clearly worded. A person using it should not have to ask for an explanation of any item.

User Account

All Pages