# short-term-capital-1 | Original Papers

Use the book to answer attached file by referring to below learning objectives

Text: Fundamentals of Financial Management, 13th Edition (2013)

Learning Objective 2.1: Describe the short-term financing options available to finance a company’s expansion plans.:

Learning Objective 2.2: Analyze the advantages and disadvantages of short-term financing sources.:

Learning Objective 5.1: Calculate AFN.: Follow this formula:

AFN = (A*/So)(change in sales) – (L*/So)(change in sales) – (profit margin)(forecasted sales)(retention ratio)

For example, (A*/So)(change in sales)

= [(3,000,000/5,000,000)*1,000,000]

Complete the rest of the formula likewise.

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