This course focuses on the set of decisions and problems faced by financial managers -generally in the treasurer function of the organization - in managing short-term operating aspects of the firm. The financial impact of these activities generally is reflected in the top half of the balance sheet. This includes management of cash and liquidity, managing banking relations and funding, managing short-term financial risk, short-term forecasting and participating in managing credit, inventory, and payables policies. Many of these elements are a direct result of the operating policies and activities of the organization. While financial decisions such as capital structure or dividend policy may be the sole purview of the finance department staff, with little input from other areas of the firm, the short-term, operating finance decisions are directly impacted by and must be coordinated with decisions made in other functional areas of the organization, such as marketing or operations. For example, a decision on the size of the raw materials inventory will have to consider the production department's objective of having sufficient inventory level to maintain smooth operations and the finance department's objective of earning a sufficient return on the capital invested. In addition, mechanisms must be in place to efficiently move funds from customers into the company's banking system, to pay its obligations, and to invest temporary excess funds. This course focuses on the financial aspects of these operating decisions, how to evaluate these decisions, and the institutional framework in which these policies are implemented.