Which of the following statements regarding how a firm should finance its cash needs is$$ TRUE?

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Part $1$

A$.$

Permanent working capital should be financed by long$-$term sources of$$ funds, while temporary working capital should only be paid for with cash.

B$.$

Both permanent working capital and temporary working capital should be financed by short$-$term sources of funds.

C$.$

Permanent working capital should be financed by short$-$term sources of$$ funds, while temporary working capital should be financed by long$-$term sources of funds.

D$.$

Both permanent working capital and temporary working capital should be financed by long$-$term sources of funds.

E$.$

Permanent working capital should be financed by long$-$term sources of$$ funds, while temporary working capital should be financed by short$-$term sources of funds.