Introduction to Corporate Finance

Ross et al.: Fundamentals

of Corporate Finance, Sixth

Edition, Alternate Edition

VII. Short−Term Financial

Planning and Management

19. Short−Term Finance
    and Planning

(^664) © The McGraw−Hill
Companies, 2002
SHORT-TERM FINANCIAL PLANNING
AND MANAGEMENT

PART SEVEN

CHAPTER 19 Short-Term Finance and Planning To this point, we have described the

decisions of long-term finance, including capital budgeting, capital structure, and dividend policy. This

chapter introduces some aspects of short-term finance. Short-term finance is the analysis of decisions

made when the relevant cash flows all occur in the near future. The focus of short-term finance is on

current assets and current liabilities.

CHAPTER 20 Cash and Liquidity Management Why do firms hold any cash? This is the

question Chapter 20 attempts to answer, and it discusses some very good reasons for firms to do so.

This chapter shows how firms can keep investments in cash low while still operating effectively.

CHAPTER 21 Credit and Inventory Management This chapter looks at a firm’s decision to

grant credit. Granting credit can result in increased sales for the firm, but this benefit must be balanced

against the extra costs of a credit sale. The chapter also discusses some important financial aspects of

inventory management.

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