Jackson Plumbing,a medium-sized company,wants to guarantee that it can obtain short-term funds to meet unexpected future cash needs.Which of the following strategies would best meet the financing needs of Jackson Plumbing? Financial managers at Jackson Plumbing should:

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Arranging for a revolving credit agreement with Jackson Plumbing's commercial bank would provide the company with access to short-term funds when needed, and the ability to draw down the line of credit as needed can be a flexible option for managing unexpected cash needs. Issuing commercial paper may not be feasible for a medium-sized company, and requesting approval for an issue of additional shares of common stock may take too much time and may not be appropriate for short-term funding needs. Eliminating credit sales would also not be a viable option as this could potentially harm the company's revenue streams and growth potential.

Jackson Plumbing,a Medium-Sized Company,wants to Guarantee That It Can Obtain