<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT ADVISER Value Line, Inc.
220 East 42nd Street
New York, NY 10017-5891
DISTRIBUTOR Value Line Securities, Inc.
220 East 42nd Street
New York, NY 10017-5891
CUSTODIAN BANK State Street Bank and Trust
Co.
225 Franklin Street
Boston, MA 02110
SHAREHOLDER State Street Bank and Trust
SERVICING AGENT Co.
c/o NFDS
P.O. Box 419729
Kansas City, MO 64141-6729
INDEPENDENT Price Waterhouse LLP
ACCOUNTANTS 1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite
100
Greenwich, CT 06830
DIRECTORS Jean Bernhard Buttner
John W. Chandler
Leo R. Futia
Charles E. Reed
Paul Craig Roberts
Nancy-Beth Sheerr
OFFICERS Jean Bernhard Buttner
CHAIRMAN AND PRESIDENT
Charles Heebner
VICE PRESIDENT
David T. Henigson
VICE PRESIDENT and
SECRETARY/TREASURER
Jack M. Houston
ASSISTANT SECRETARY/TREASURER
Stephen La Rosa
ASSISTANT SECRETARY/TREASURER
</TABLE>
An Investment in The Value Line Cash Fund, Inc. is not guaranteed or
insured by the U.S. Government and there is no assurance that the Fund
will maintain its per share net asset value.
This audited report is issued for information of shareholders. It is
not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective prospectus of the Fund
(obtainable from the Distributor).
VLF612153
------------------------------------
ANNUAL REPORT
------------------------------------
DECEMBER 31, 1996
----------------------------------------
VALUE LINE
CASH FUND, INC.
[LOGO]
<PAGE>
THE VALUE LINE CASH FUND, INC.
To Our Value Line
- -------------------------------------------
To Our Shareholders:
For the year ended December 31, 1996, the yield for The Value Line Cash Fund,
Inc. was 5.00%. This was better than the average taxable money market fund
return of 4.80%, ranking the Fund 93rd out of 288 Money Market Instrument Funds
for calendar year 1996 as compiled by Lipper Analytical Services. Lipper ranks
the Fund 30th out of 175 for the past 5 years and 15th out of 106 for the last
10 years. Total net assets of the Fund at year end were $361.8 million; the
average days to maturity stood at 50 days, slightly less than where it began the
year at 54 days.
We continue to place priority on securities of the highest quality. During the
past year, we increased the Fund's exposure to both U.S. Government Agency
Obligations (55.6%) and other first-tier securities. ("First-tier" securities
refer to those assigned the highest rating by at least two nationally recognized
organizations -- for example, P-1 by Moody's Investors Service and A-1 by
Standard & Poor's Corporation.) No investments with ratings below the first-tier
level are currently being considered. In addition, any commercial paper issuer
evaluated by The Value Line Investment Survey must carry a minimum Safety rank
of 3 and a Financial Strength Rating of B or higher.
In January 1996, the Federal Reserve decreased the Federal Funds rate to 5.25%,
its only adjustment to short-term rates in 1996. Indications of strength in the
economy, particularly in the second quarter of last year led many market
participants to believe the Fed would have to reverse its course and raise rates
in order to prevent above-trend growth. Long-term rates rose over 1.25% in
anticipation of this, but began to fall later in the year as the economy's
growth moderated. The Fed appeared vindicated as we returned to a more moderate
growth, benign inflation environment towards year end. However, labor markets
remain tight, and any elevation of price pressures could signal the Fed into
action. (Please see the accompanying Economic Observations for a detailed
discussion of the economy, inflation and interest rates.)
We appreciate your confidence in The Value Line Cash Fund, and we look forward
to serving your investment needs in the future.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
CHAIRMAN and PRESIDENT
February 26, 1997
- --------------------------------------------------------------------------------
2
<PAGE>
THE VALUE LINE CASH FUND, INC.
Cash Fund Shareholders
- -------------------------------------------
Economic Observations
The signs continue to point toward a moderation in the rate of economic growth.
For example, not only are the nation's factories a little less busy these days,
but improvements in the auto, housing, and retail markets all appear to be
leveling off. To be sure, there are still isolated instances in which selected
sectors are gaining in strength. On the whole, though, the next few quarters
should see a somewhat slower rate of economic expansion, with real,
inflation-adjusted gross domestic product increasing on an average of 2.0%-2.5%.
Inflation, meanwhile, continues to be practically nonexistent, with prices at
both the producer (or wholesale) and consumer levels either falling or going up
marginally. This healthy inflation trend, moreover, is unlikely to be reversed
anytime soon given the lack of serious shortages on either the labor or the raw
materials fronts.
Interest rates, meanwhile, reflecting the very modest rate of economic growth
and the benign nature of inflation, are unlikely to change all that much over
the next year. Nevertheless, we caution that recent remarks by Federal Reserve
Chairman Alan Greenspan, in which he noted that the Fed has, in the past,
occasionally raised rates before higher inflation actually took hold would seem
to suggest that whatever changes in borrowing costs may evolve over the next few
quarters will probably involve a move toward higher rather than lower rates.
Finally, we believe that these basic themes, in which moderation prevails on the
economic growth, inflation, and interest-rate fronts, will remain in place over
the course of the current year. In fact, barring an unsettling series of
currency, political, or military shocks in the international markets, overall
stability should persist into 1998.
- --------------------------------------------------------------------------------
3
<PAGE>
THE VALUE LINE CASH FUND, INC.
Schedule of Investments
- -------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(in thousands) Rate+ Date+ (in thousands)
<C> <S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (55.6%)
$ 1,000 Federal Farm Credit Banks................................... 4.06 (3) 2/12/97 $ 999
15,000 Federal Farm Credit Banks................................... 5.32(1) 5/21/97 14,997
9,000 Federal Farm Credit Banks................................... 5.38(3) 7/1/97 8,998
10,000 Federal Farm Credit Banks................................... 5.60 11/3/97 10,004
5,000 Federal Home Loan Banks..................................... 5.23 3/26/97 4,939
20,000 Federal Home Loan Banks..................................... 5.32(2) 8/14/97 19,990
10,000 Federal Home Loan Banks..................................... 5.50(3) 9/26/97 9,994
10,000 Federal Home Loan Banks..................................... 5.21(3) 10/2/97 9,995
18,000 Federal Home Loan Mortgage Corp............................. 5.26 1/3/97 17,995
25,000 Federal Home Loan Mortgage Corp............................. 5.70 1/7/97 24,976
5,000 Federal Home Loan Mortgage Corp............................. 5.41(2) 7/3/97 4,999
10,000 Federal National Mortgage Association....................... 5.26(1) 2/21/97 9,999
10,000 Federal National Mortgage Association....................... 5.42(3) 5/2/97 9,998
10,000 Federal National Mortgage Association....................... 5.45(1) 6/20/97 10,003
3,000 Federal National Mortgage Association....................... 5.43(3) 9/12/97 2,998
10,000 Federal National Mortgage Association....................... 5.38(3) 11/4/97 9,993
10,000 Federal National Mortgage Association....................... 5.25(2) 12/9/97 9,996
10,000 Federal National Mortgage Association....................... 5.38 12/9/97 9,983
5,000 Student Loan Marketing Association.......................... 5.54(2) 3/3/97 5,000
5,270 Student Loan Marketing Association.......................... 5.57(2) 10/30/97 5,276
- -------------- --------------
201,270 TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS................... 201,132
- -------------- --------------
COMMERCIAL PAPER (24.2%)
BANK (1.9%)
7,000 Deutsche Bank Financial Inc................................. 5.49 5/1/97 6,872
- -------------- --------------
CHEMICAL-DIVERSIFIED (1.6%)
6,000 Air Products & Chemicals, Inc............................... 5.45 2/11/97 5,963
- -------------- --------------
CHEMICAL-SPECIALTY (2.0%)
7,100 Nalco Chemical Co........................................... 5.46 1/23/97 7,076
- -------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
THE VALUE LINE CASH FUND, INC.
December 31, 1996
- -------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(in thousands) Rate+ Date+ (in thousands)
- ----------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DRUG (3.9%)
$ 7,000 Glaxo Wellcome PLC.......................................... 5.29% 2/14/97 $ 6,955
7,000 Warner-Lambert Co........................................... 5.30 1/2/97 6,999
- -------------- --------------
14,000 13,954
- -------------- --------------
ELECTRONICS (1.6%)
6,000 Avnet Inc................................................... 5.60 3/3/97 5,943
- -------------- --------------
FINANCIAL SERVICES (3.9%)
7,000 Ford Motor Credit Corp...................................... 5.31 1/13/97 6,988
7,000 IBM Credit Corp............................................. 5.31 1/7/97 6,994
- -------------- --------------
14,000 13,982
- -------------- --------------
FOREIGN ELECTRONICS/ENTERTAINMENT (1.9%)
7,000 Hitachi America, Ltd........................................ 5.55 3/11/97 6,925
- -------------- --------------
INSURANCE-LIFE (1.9%)
7,000 Jefferson-Pilot Corp........................................ 5.46 1/23/97 6,977
- -------------- --------------
MACHINERY (1.9%)
7,000 Dover Corp.................................................. 5.34 1/13/97 6,987
- -------------- --------------
RAILROAD (1.7%)
6,000 Norfolk Southern Corp....................................... 5.33 2/5/97 5,969
- -------------- --------------
SECURITIES BROKERAGE (1.9%)
7,000 Goldman Sachs Group, L.P.................................... 5.43 1/7/97 6,994
- -------------- --------------
88,100 TOTAL COMMERCIAL PAPER...................................... 87,642
- -------------- --------------
CORPORATE SECURITIES (5.8%)
BANK (1.9%)
7,000 Bank of America-Illinois.................................... 5.85 9/30/97 7,002
- -------------- --------------
FINANCIAL SERVICES (3.9%)
7,000 Associates Corp. N.A........................................ 6.88 1/15/97 7,005
7,000 FCC National Bank........................................... 5.36 1/27/97 7,000
- -------------- --------------
14,000 14,005
- -------------- --------------
21,000 TOTAL CORPORATE SECURITIES.................................. 21,007
- -------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
THE VALUE LINE CASH FUND, INC.
Schedule of Investments
- -------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(in thousands) Rate+ Date+ (in thousands)
- ----------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TAXABLE MUNICIPAL SECURITIES (11.8%)
$ 7,000 Arkansas, Development Financial Authority, Industrial
Facilities Revenue, (Potlatch Corp. Projects) Ser 1995-B
LOC-Credit Swiss (weekly put)............................. 5.70 (2) 8/1/30 $ 7,000
7,000 De Kalb County, Georgia, Development Authority Revenue,
Emory University Project (commercial paper)............... 5.50 3/13/97 7,000
7,000 Mississippi Business Financial Corp., Industrial Development
Revenue Bonds, Series 1994, (Bryan Foods, Inc. Project)
Gtd.-Sara Lee Corp. (weekly put).......................... 5.70(2) 2/1/19 7,000
15,000 Palmdale California, Community Redevelopment Agency, Special
Obligations Revenue Bonds................................. 6.75 11/15/97 15,116
6,475 State of Texas, Veterans Housing Assistance, Refunding
Bonds, Series 1994 A-2, General Obligation - Pledge
(weekly put).............................................. 5.88(2) 12/1/33 6,475
--------------
42,475 TOTAL TAXABLE MUNICIPAL SECURITIES.......................... 42,591
- -------------- --------------
ASSET BACKED SECURITIES (2.9%)
7,500 Carco Auto Loan Master Trust, Class A-1, Money Market
Extendible Certificates Ser-1993-2........................ 5.66(3) 7/15/97 7,500
3,122 WFS Financial 1996-C Owner Trust Class A-1, (quarterly
paydown, interest and principal).......................... 5.63(4) 9/20/97 3,122
--------------
10,622 TOTAL ASSET BACKED SECURITIES............................... 10,622
- -------------- --------------
363,467 TOTAL INVESTMENTS (100.3%) (AMORTIZED COST $362,994)........ 362,994
- -------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
6
<PAGE>
THE VALUE LINE CASH FUND, INC.
December 31, 1996
- -------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount (in thousands, except
(in thousands) per-share amount)
- ----------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT (5.8%)
(including accrued interest)
$ 20,770 Collateralized by $20,380,000 U.S. Treasury Notes, 6 3/8%,
due 1/15/00 with a value of $21,218,000 (with Morgan
Stanley & Co., Inc. 6.25%, dated 12/31/96, due 1/2/97,
delivery value of $20,777,212)............................ $ 20,774
EXCESS OF LIABILITIES OVER CASH AND OTHER ASSETS (6.1%)..... (21,971 )
--------------
$ 384,237 NET ASSETS (100.0%)......................................... $ 361,797
- -------------- --------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
OUTSTANDING SHARE......................................... $1.00
--------------
</TABLE>
RATE RESET FREQUENCY FOR FLOATING RATE SECURITIES AT DEC. 31, 1996:
(1) DAILY (2) WEEKLY (3) MONTHLY (4) QUARTERLY
+ THE RATE SHOWN ON FLOATING RATE SECURITIES REPRESENTS THE YIELD AT THE END OF
THE REPORTING PERIOD. THE MATURITY DATES ON THESE TYPES OF SECURITIES REFLECT
THE FINAL MATURITY DATES.
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
7
<PAGE>
THE VALUE LINE CASH FUND, INC.
Statement of Assets and Liabilities
Statement of Operations
at December 31, 1996
for the year ended December 31, 1996
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dollars
(in thousands except per share amount)
----------------
<S> <C>
Assets:
Investments at value:
(Amortized cost--$362,994)............. $ 362,994
Repurchase agreement..................... 20,774
Cash..................................... 180
Interest receivable...................... 1,865
Receivable for capital shares sold....... 6,959
---------
Total Assets......................... 392,772
---------
Liabilities:
Payable for capital shares repurchased... 30,597
Accrued expenses:
Advisory fee........................... 175
Other.................................. 203
---------
Total Liabilities.................... 30,975
---------
Net Assets............................... $ 361,797
---------
Net Assets:
Capital Stock, at $.10 par value
(authorized 2 billion shares,
outstanding 361,957,647 shares)........ $ 36,196
Additional paid-in capital............... 325,762
Accumulated net realized loss on
investments............................ (161)
---------
Net Assets........................... $ 361,797
---------
Net Asset Value, Offering and Redemption
Price per Outstanding Share............ $ 1.00
---------
</TABLE>
<TABLE>
<CAPTION>
Dollars
(IN THOUSANDS)
---------------
<S> <C>
Investment Income:
Interest income........................... $ 19,958
---------
Expenses:
Advisory fee.............................. 1,476
Transfer agent............................ 292
Postage and other expenses................ 53
Registration and filing fees.............. 51
Custodian fees............................ 37
Auditing and legal........................ 36
Printing, checks and stationery........... 36
Telephone and wire charges................ 33
Insurance and dues........................ 17
Directors' fees and expenses.............. 13
---------
Total Expenses before custody
credits.............................. 2,044
Less: custody credits................. (2)
---------
Net expenses.......................... 2,042
---------
Net Investment Income..................... 17,916
---------
Net Realized Gain on Investments.......... 55
---------
Net Increase in Net Assets from
Operations.............................. $ 17,971
---------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
8
<PAGE>
THE VALUE LINE CASH FUND, INC.
Statement of Changes in Net Assets
for the years ended December 31, 1996 and 1995
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
--------------------
<CAPTION>
(DOLLARS IN
THOUSANDS)
<S> <C> <C>
Operations:
Net investment income............................................................ $ 17,916 $ 18,793
Net realized gain on investments................................................. 55 110
--------------------
Net Increase in Net Assets from Operations....................................... 17,971 18,903
--------------------
Distributions to Shareholders:
Net investment income............................................................ (18,017) (18,740)
--------------------
Capital Share Transactions:
Net proceeds from sale of shares................................................. 755,880 475,475
Net proceeds from reinvestment of dividends...................................... 18,017 18,740
--------------------
773,897 494,215
Cost of shares repurchased....................................................... (771,397) (476,667)
--------------------
Increase from capital share transactions......................................... 2,500 17,548
--------------------
Total Increase in Net Assets....................................................... 2,454 17,711
Net Assets:
Beginning of year................................................................ 359,343 341,632
--------------------
End of year...................................................................... $ 361,797 $ 359,343
--------------------
Undistributed net investment income at end of year................................. $ -- $ 101
--------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
9
<PAGE>
THE VALUE LINE CASH FUND, INC.
Notes to Financial Statements
- -------------------------------------------
1.Significant Accounting Policies
The Value Line Cash Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end, diversified management
investment company. The Fund's investment objective is to secure as high a level
of current income as is consistent with liquidity and preservation of capital.
The following summary of significant accounting policies is in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Fund in the preparation of its financial
statements. Generally accepted accounting principles may require management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results may differ from those estimates.
(A) Security Valuation. Securities held by the Fund are valued on the basis of
amortized cost, which approximates market value and does not take into account
unrealized gains or losses. This involves valuing an instrument at cost and
thereafter assuming a constant amortization to maturity of any discount or
premium, regardless of the impact of fluctuating interest rates on the market
value of the instrument.
The valuation of securities based upon their amortized cost is permitted by Rule
2a-7 under the Investment Company Act of 1940, as amended. The rule requires
that the Fund maintain a dollar-weighted average portfolio maturity of 90 days
or less, purchase instruments that have remaining maturities of 13 months or
less only, and invest only in securities determined by the Board of Directors to
be of good quality with minimal credit risks. The Directors have established
procedures designed to achieve these objectives.
(B) Repurchase Agreements. In connection with transactions in repurchase
agreements, the Fund's custodian takes possession of the underlying collateral
securities, the value of which exceeds the principal amount, including accrued
interest, of the repurchase transaction. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. In
the event of default of the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral proceeds may be subject to legal proceedings.
(C) Security Transactions. Security transactions are accounted for on the date
the securities are purchased or sold. In computing net investment income,
premiums and discounts on portfolio securities are amortized. Realized gains and
losses on securities transactions are determined on the identified-cost method.
(D) Federal Income Taxes. It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies, including the distribution requirements of the Tax Reform Act of
1986, and to distribute, on a daily basis, all of its taxable income to its
shareholders. Therefore, no Federal income tax or excise tax provision is
required.
2.Dividends, Distributions to Shareholders and Capital
Share Transactions
The Fund earns interest daily on its investments and distributes daily on each
day the Fund is open for business all of its net investment income. Net realized
gains, if any, will be distributed once a year. Earnings for Saturdays, Sundays
and holidays are paid as a dividend on the next business day. All such
distributions are automatically credited to shareholder accounts in additional
shares at net asset value of the day declared.
Because the Fund has maintained a $1.00 net asset value per share from
inception, the number of shares sold,
- --------------------------------------------------------------------------------
10
<PAGE>
THE VALUE LINE CASH FUND, INC.
- -------------------------------------------
shares issued to shareholders in reinvestment of dividends declared, and shares
repurchased, are equal to the dollar amounts shown in the Statement of Changes
in Net Assets for the corresponding capital share transactions.
3.Tax Information
At December 31, 1996, the aggregate cost of investments in securities and
repurchase agreement for Federal income tax purposes is approximately
$383,768,000. At December 31, 1996, there is no unrealized appreciation or
depreciation of investments.
For Federal income-tax purposes, the Fund utilized approximately $55,000 of its
capital loss carryover to offset realized gains during the year ended December
31, 1996. The Fund had a net capital loss carryover at December 31, 1996 of
approximately $161,000, which will expire in the year 2002. To the extent future
capital gains are offset by such capital losses, the Fund does not anticipate
distributing any such gains to the shareholders.
4.Investment Advisory Contract, Management Fees, and
Transactions with Affiliates
An advisory fee of $1,475,674 was paid or payable to Value Line, Inc. (the
"Adviser"), the Fund's investment adviser, for the year ended December 31, 1996.
This was computed at an annual rate of 4/10 of 1% per year of the average daily
net asset value of the Fund during the year and paid monthly. The Adviser
provides research, investment programs and supervision of the investment
portfolio and pays costs of administrative services, office space, equipment and
compensation of administrative, bookkeeping, and clerical personnel necessary
for managing the affairs of the Fund. The Adviser also provides persons,
satisfactory to the Fund's Board of Directors, to act as officers of the Fund
and pays their salaries and wages. The Fund bears all other costs and expenses.
A fee of $2,880 for printing services was paid to the Adviser for the year ended
December 31, 1996.
Certain officers and directors of the Adviser and its subsidiary, Value Line
Securities, Inc. (the Fund's distributor and a registered broker/dealer), are
also officers and directors of the Fund.
The Adviser and/or affiliated companies and the Value Line, Inc. Profit Sharing
and Savings Plan owned 57,930,627 shares of the Fund's capital stock,
representing 16% of the outstanding shares at December 31, 1996. In addition,
certain officers and directors of the Fund owned 5,451,138 shares of the Fund,
representing 1.51% of the outstanding shares.
- --------------------------------------------------------------------------------
11
<PAGE>
THE VALUE LINE CASH FUND, INC.
Financial Highlights
- -------------------------------------------
Selected Data for a Share of Capital Stock Outstanding Throughout Each year:
<TABLE>
<CAPTION>
Years Ended December 31,
----------------------------------------------------------
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------
Net asset value, beginning of year............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------------------------------------------------------
Net investment income................... .050 .054 .037 .031 .037
Dividends from net investment income.... (.050) (.054) (.037) (.031) (.037)
----------------------------------------------------------
Net realized loss on securities......... -- -- (.005) -- --
Voluntary capital contribution from
Adviser............................... -- -- .005 -- --
----------------------------------------------------------
Change in net asset value............... -- -- -- -- --
----------------------------------------------------------
Net asset value, end of year.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------------------------------------------------------
Total return.................................. 5.00 % 5.40 % 3.69 (1) 3.06 % 3.74 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)........ $ 361,797 $ 359,343 $ 341,632 $ 345,769 $ 415,190
Ratio of expenses to average net assets....... .55 % .57 % .61 % .60 % .60 %
Ratio of net investment income to average net
assets...................................... 4.86 % 5.27 % 3.63 % 3.02 % 3.67 %
</TABLE>
(1)THE TOTAL RETURN FOR 1994 REFLECTS THE EFFECT OF A VOLUNTARY CAPITAL
CONTRIBUTION FROM THE ADVISER. WITHOUT SUCH CONTRIBUTION, THE TOTAL RETURN
WOULD HAVE BEEN 3.18%.
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
12
<PAGE>
THE VALUE LINE CASH FUND, INC.
Report of Independent Accountants
- -------------------------------------------
To the Shareholders and Board of Directors
of The Value Line Cash Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Value Line Cash Fund, Inc. (the
"Fund") at December 31, 1996, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards, which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1996 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NY 10036
February 10, 1997
- --------------------------------------------------------------------------------
13
<PAGE>
THE VALUE LINE CASH FUND, INC.
The Value Line Family of Funds
- -------------------------------------------
1950--THE VALUE LINE FUND seeks long-term growth of capital along with modest
current income by investing substantially all of its assets in common stocks or
securities convertible into common stock.
1952--THE VALUE LINE INCOME FUND'S primary investment objective is income, as
high and dependable as is consistent with reasonable growth. Capital growth to
increase total return is a secondary objective.
1956--THE VALUE LINE SPECIAL SITUATIONS FUND seeks to obtain long-term growth of
capital by investing not less than 80% of its assets in "special situations". No
consideration is given to achieving current income.
1972--VALUE LINE LEVERAGED GROWTH INVESTORS' sole investment objective is to
realize capital growth by investing substantially all of its assets in common
stocks. The Fund may borrow up to 50% of its net assets to increase its
purchasing power.
1979--THE VALUE LINE CASH FUND, a money market fund, seeks high current income
consistent with preservation of capital and liquidity.
1981--VALUE LINE U.S. GOVERNMENT SECURITIES FUND seeks maximum income without
undue risk to principal. Under normal conditions, at least 80% of the value to
its assets will be invested in issues of the U.S. Government and its agencies
and instrumentalities.
1983--VALUE LINE CENTURION FUND* seeks long-term growth of capital as its sole
objective by investing primarily in stocks ranked 1 or 2 by Value Line for
year-ahead relative performance.
1984--THE VALUE LINE TAX EXEMPT FUND seeks to provide investors with maximum
income exempt from federal income taxes while avoiding undue risk to principal.
The Fund offers investors a choice of two portfolios: a Money Market Portfolio
and a High-Yield Portfolio.
1985--VALUE LINE CONVERTIBLE FUND seeks high current income together with
capital appreciation primarily from convertible securities ranked 1 or 2 for
year-ahead performance by the Value Line Convertible Ranking System.
1986--VALUE LINE AGGRESSIVE INCOME TRUST seeks to maximize current income by
investing in high-yielding, lower-rated, fixed-income corporate securities.
1987--VALUE LINE NEW YORK TAX EXEMPT TRUST seeks to provide New York taxpayers
with maximum income exempt from New York State, New York City and federal
individual income taxes while avoiding undue risk to principal.
1987--VALUE LINE STRATEGIC ASSET MANAGEMENT TRUST* invests in stocks, bonds and
cash equivalents according to computer trend models developed by Value Line. The
objective is to professionally manage the optimal allocation of these
investments at all times.
1992--VALUE LINE INTERMEDIATE BOND FUND seeks high current income consistent
with low volatility of principal by investing in a diversified portfolio of
investment-debt securities with a dollar-weighted average portfolio maturity of
between three and ten years.
1993--VALUE LINE SMALL-CAP GROWTH FUND invests primarily in common stocks or
securities convertible into common stock, with its primary objective being
long-term growth of capital.
1993--VALUE LINE ASSET ALLOCATION FUND seeks high total investment return,
consistent with reasonable risk. The Fund invests in stocks, bonds and money
market instruments utilizing quantitative modeling to determine the correct
asset mix.
1995--VALUE LINE U.S. MULTINATIONAL COMPANY FUND'S investment objective is
maximum total return. It invests primarily in securities of U.S. companies that
have significant sales from international operations.
* ONLY AVAILABLE THROUGH THE PURCHASE OF GUARDIAN INVESTOR, A TAX DEFERRED
VARIABLE ANNUITY, OR VALUEPLUS, A VARIABLE LIFE INSURANCE POLICY.
FOR MORE COMPLETE INFORMATION ABOUT ANY OF THE VALUE LINE FUNDS, INCLUDING
CHARGES AND EXPENSES, SEND FOR A PROSPECTUS FROM VALUE LINE SECURITIES, INC.,
220 EAST 42ND STREET, NEW YORK, NEW YORK 10017-5891 OR CALL 1-800-223-0818, 24
HOURS A DAY, 7 DAYS A WEEK. READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR
SEND MONEY.
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