The document discusses short-term financial planning and management for a company. It covers linking short-term and long-term financing decisions, cash budgeting, sources of short-term borrowing, and analyzing changes in cash and working capital. An example using a company called Dynamic Mattress Company demonstrates how to forecast cash sources and uses, calculate short-term financing needs, and develop a short-term financing plan.

1. Financial Management Short-Term Financial Planning

3. Firm’s Cumulative Capital Requirement Lines A, B, and C show alternative amounts of long-term finance. Strategy A: A permanent cash surplus Strategy B: Short-term lender for part of year and borrower for remainder Strategy C: A permanent short-term borrower A B C Year 2 Year 1 Dollars Cumulative capital requirement Time

4. LA Gear Profit & Assets

5. LA Gear Debt & Equity Figures in $millions

12. Changes in Cash & W.C. Example - Dynamic Mattress Company Condensed Balance Sheet