Short-Term Financial Plans. Fill in the blanks in the following statements:

a. A firm has a cash surplus when its ________ exceeds its ________. The surplus is normally invested in ________.

b. In developing the short-term financial plan, the financial manager starts with a(n)

________ budget for the next year. This budget shows the ________ generated or absorbed by the firm’s operations and also the minimum ________ needed to support these operations. The financial manager may also wish to invest in ________ as a reserve for unexpected cash requirements.