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• Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2021).Corporate finance: Core principles and applications(6th ed.). McGraw-Hill.
  • Chapter 18, "Short-Term Finance and Planning," pages 551-582. In thischapter, see how short-term financial planning is the essential discipline of finance to ensure that the firm's liquidity is intact and that ongoing operations of the firm are secure.
• Moy, R. (2013, May 24).Short term financial planning - uses and sources of cash[Video]| Transcript.YouTube. https://www.youtube.com/watch?v=waO9sBRaSDc

Short-term financial planning is the essential discipline of finance to ensure that the firm's liquidity is intact and that ongoing operations of the firm are secure. The examination of concepts like working capital, cash budgets, cash management, and short-term borrowing will show that without prudent attention to this area, financial distress will occur. Firms need to line up their needed capital not when they need it but beforethey need it.Hence, the planning and control functions thatcome into play in short-term financial planning are mandatory activities for all businesses, huge or small.

Research a new start-up company (in business 1-2 years) that went bankrupt because they grew too fast. Explain how that can happen as it relates to short-term cash management.

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