What happens to the cash that is sitting on their balance sheets? They don't keep it under a mattress. It get stored in banks, and forms the fractional reserve for new loans. Who are those loans given to? Smaller businesses, mortgages on houses, etc.

At least, that would be true if the banks would lend. And if the companies would keep the money in local banks and not overseas. Our tax code encourages offshoring the money!!