As you run your firm, you'll need to plan cash balances and inventories. How do you decide how much of each is enough but not too much?

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ASSETS Current Assets Cash Marketable Securities Accounts Receivable Inventory ( 0 units at $67.70 /UNIT ) Total Current Assets Fixed Assets (net of depreciation Machinery and Equipment Plant Total Fixed Assets Total Assets LIABILITIES AND OWNER EQUITY Current Liabilities Accounts Payable Short Term Loans Payable Short Term Penalty Loan Intermediate Term Debt Maturing Bonds Maturing Total Current Liabilities Long Term Liabilities Intermediate Loans: 2 years 3 years Bonds Total Long Term Liabilities Total Liabilities Owners' Equity Preferred Stock ( 0 shares) Common Stock ( 1,000,000 shares) Retained Earnings Total Equity Position Statement Quarter Number 6 Total Liabilities and Equity Summarsz Data $62,332 0 4,877,600 0 $4,939,932 $4,398,220 25,777,750 30,175,970 $35,115,902 $321,248 1,875,000 3,365,933 6,143,332 900,000 $12,605,512 $937,500 5,282,084 0 $0 8,000,000 8,290,807 6,219,583 $18,825,095 16,290,805 $35,115,902 ASSETS Current Assets Cash Marketable Securities Accounts Receivable Inventory ( 0 units at $67.70 /UNIT ) Total Current Assets Fixed Assets (net of depreciation Machinery and Equipment Plant Total Fixed Assets Total Assets LIABILITIES AND OWNER EQUITY Current Liabilities Accounts Payable Short Term Loans Payable Short Term Penalty Loan Intermediate Term Debt Maturing Bonds Maturing Total Current Liabilities Long Term Liabilities Intermediate Loans: 2 years 3 years Bonds Total Long Term Liabilities Total Liabilities Owners' Equity Preferred Stock ( 0 shares) Common Stock ( 1,000,000 shares) Retained Earnings Total Equity Position Statement Quarter Number 6 Total Liabilities and Equity Summarsz Data $62,332 0 4,877,600 0 $4,939,932 $4,398,220 25,777,750 30,175,970 $35,115,902 $321,248 1,875,000 3,365,933 6,143,332 900,000 $12,605,512 $937,500 5,282,084 0 $0 8,000,000 8,290,807 6,219,583 $18,825,095 16,290,805 $35,115,902