When the standard method and your forecasts result in cash deficits before funding, the deficit is funded according to the order on the Fund Cash Deficits with... list of the Standard tab.
Enter accounts in the Apply Cash Surplus to... list to achieve:
Decreasing Marketable Securities
To use excess cash, include marketable securities in the list. Minimum requirements are honored if you select "specify minimum" and enter a non-zero value in the forecast for minimum marketable securities.
Increase in Revolving Balances
To include as a source of cash the possibility of increasing the outstanding balance on revolving debt, include the revolving account in the list.
To fund deficits with Preferred equity, include the account in the list.
If the common shares issued account is in the list, Strategic Finance issues the number of shares at the Transaction Price for Common Shares to raise cash. The maximum number of shares authorized for sale is established in the Common Shares Issued (Year-End) account in all forecast periods.
Another source of corporate cash flow is the sale of treasury stock. Like issuance of common stock, the cash available from sale is determined by the number of shares available for sale and the Transaction Price for Common Shares. If you are accounting for additional paid in capital separately, enter a Par Value per Common Share of Treasury Stock.