Forecasting Short-Term Financing Needs

Show how future cash flow forecasts allow a company to determine whether it has a cash flow surplus or deficit, and whether it is a long- or short-term imbalance.
Discuss the recommendations of the matching principle with respect to long- and short-term needs for funds.
Describe three types of bank loans, and how they may be used for short-term cash needs.
Identify the factors that affect the effective annual rate of a bank loan.
Define commercial paper, and discuss its advantages for large corporations.
Describe the use of inventory and accounts receivable as security for loans.
Define factoring, floating liens, trust receipts loan, and a warehouse arrangement