1.What are the negative consequences of a company holding too much cash?
2.Explain the factors affecting the choice of a maximum cash balance amount.
3.What is the difference between pro forma financial statements and a cash budget? Explain why pro forma financial statements are not used to forecast cash needs.
4.What are the benefits of “collecting early” and how do companies attempt to do this?
5.What are the benefits of “paying late” (but not too late) and how do companies attempt to do this?