If the company's cash budget for the month shows a significant amount of cash in excess of their needs, the company should consider doing which of the following?

Question

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When a company has excess cash, it is financially prudent to consider making investments (either short-term or long-term) to generate additional income or to return value to shareholders by paying dividends. Both actions can effectively utilize surplus funds to benefit the company and its stakeholders.

If the Company's Cash Budget for the Month Shows a Significant