How do companies build cash reserves for paying back bonds on their maturity date or to replace assets?
Submitted by admin on December 21, 2009 – 12:47 pmNo Replies
A web user asks, Hello,
Do companies actualy build cash reserves for the above ? Do they build up cash equivalent to the amortisation charges in the case of assets?
If so, where are these reserves shown? In the balance sheet? Under which denotation? Reserves?
How can one see if a company has enough money set aside to plan for such events?
Thanks!
Can you help them out? Post your advice!
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