Question: Ednas Laundry Services just completed pro forma financial statements using the percentage-of-sales approach. The pro forma Balance Sheet requires a plug of -$5,500 in Cash

Ednas Laundry Services just completed pro forma financial statements using the percentage-of-sales approach. The pro forma Balance Sheet requires a plug of -$5,500 in Cash to make Total Assets equal Total Liabilities and Equity. What does that mean? Can a firm have negative cash? What are the firms options in this case?

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