FIGURE 16-2 Alternative Short-Term Financing Policies
12345678
Temporary
NOWC
Total
Permanent
Net Operating
Assets
Dollars
Temporary
NOWC
Long-Term
Debt plus Equity
Short-Term
Debt
a. Moderate Approach (Maturity Matching)
Time Period
12345678
Dollars
Temporary
NOWC
Long-Term
Debt plus Equity
Short-Term
Debt
b. Relatively Aggressive Approach
Time Period
12345678
Dollars Marketable
Securities
Long-Term
Debt plus Equity
Short-Term Financing
Requirements
c. Conservative Approach
Time Period
Fixed Assets
Permanent Level
of NOWC
Fixed Assets
Permanent Level
of NOWC
Fixed Assets
Permanent Level
of NOWC
Alternative Short-Term Financing Policies 605
600 Working Capital Management
