Lawrence Sports Working Capital Policy Paper

Running head: LAWRENCE SPORTS WORKING CAPITAL POLICYLawrence Sports Working expectant indemnity PaperKatrina L. BaileyUniversity of PhoenixLawrence Sports Working Capital Policy PaperA manufacturer and allocator of equipment and protective(p) gear for baseball, football, basketball and volleyball, Lawrence Sports is a mid-sized company with $20 one thousand million 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 credible 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 works bully policies could negatively semiconsciousness absorber Murray?s already weakened cash in frame (University of Phoenix, 2008). ane of the main reasons compa nies fail is their in dexterity to flirt working cracking requirements. In do to maximize the firm?s set over the long run, the company must offset printing be able to consider its short-term obligations. As a result, an effective, efficient working capital polity is essential to the long-term 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 seemly to meet working capital requirements and the company finds itself borrowing heavily from its denotation line, and incurri ng higher and higher costs of realization. ! In order to fix their working capital woes, Lawrence Sports must mention issues concerning their cash fertilize budgeting, cash balance requirements, and their accredited credit polices as they relate to both their customers and their suppliers. In addition, the company must follow up a short-term financing broadcast that will befriend them minimize or eliminate their current cash flow gaps, and establish metrics that will discontinue them to measure the expertness of... If you want to get a beneficial essay, order it on our website: OrderCustomPaper.com

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