Lawrence Sports Working Capital Policy Paper

Running head: LAWRENCE SPORTS WORKING CAPITAL POLICYLawrence Sports Working pileus indemnity PaperKatrina L. BaileyUniversity of PhoenixLawrence Sports Working Capital Policy PaperA manufacturer and distributor of equipment and protective(p) gear for baseball, football, basketball and volleyball, Lawrence Sports is a mid-sized company with $20 zillion in revenues. Its principal customer is Mayo Stores, the world?s largest retailer, which accounts for 95% of Lawrence?s sales. Lawrence Sports has two principal suppliers, Gartner Products and Murray Leather Works. Although Gartner is presumable for providing 70% of Lawrence?s raw material, Lawrence is not one of Gartner?s major customers. However, accounting for 75% of sales for Murray Leather Works, Lawrence is considered a major customer whose work bully policies could negatively bruise absorber Murray?s already weakened cash in thought (University of Phoenix, 2008). ane of the main reasons companies fail is their i n office to flirt working neat requirements. In do to maximize the firm?s set over the long run, the company mustiness beginning(a) be able to consider its short-term obligations. As a result, an effective, efficient working capital polity is essential to the semipermanent extract of any company. At Lawrence Sports, an ineffective working capital policy is wreaking havoc on the company?s ability to meet its short-term liabilities.

Cash balances are not able to meet working capital requirements and the company finds itself borrowing firmly from its denotation line, and incurring higher and higher cost s of impute. In order to fix their working! capital woes, Lawrence Sports must care issues concerning their cash fertilize budgeting, cash balance requirements, and their on-going credit polices as they relate to both their customers and their suppliers. In addition, the company must follow up a short-term financing device that will befriend them minimize or eliminate their current cash flow gaps, and establish metrics that will accommodate them to measure the expertness of... If you want to get a beat essay, order it on our website: OrderCustomPaper.com

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