Learning Objectives

After reading this chapter, you should be able to:

• Define current assets and describe some common methods of managing them.

• Identify some sources of short-term financing (current liabilities).

• Summarize the importance of long-term assets and capital budgeting.

• Specify how companies finance their operations and fixed assets with long-term liabilities, particularly bonds.

• Discuss how corporations can use equity financing by issuing stock through an investment banker.

• Describe the various securities markets in the United States.

• Critique the short-term asset and liabilities position of a small manufacturer and recommend corrective action.