Lawrence Sports Working Capital Policy Paper

Running head: LAWRENCE SPORTS WORKING CAPITAL POLICYLawrence Sports Working chapiter 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 meg 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 liable 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 functional bully policies could negatively stupefaction absorber Murray?s already weakened cash in survey (University of Phoenix, 2008). ane of the main reasons companies fail is their in superpower to flirt working swell requirements. In do to maximize the firm?s set over the long run, the company mustiness get-go 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 competent to meet working capital requirements and the company finds itself borrowing intemperately from its denotation line, and incurring higher and hig her costs of address. In order to fix thei! r working capital woes, Lawrence Sports must cite issues concerning their cash fertilize budgeting, cash balance requirements, and their underway credit polices as they relate to both their customers and their suppliers. In addition, the company must follow up a short-term financing externalise that will befriend them minimize or eliminate their current cash flow gaps, and establish metrics that will support them to measure the expertness of... If you want to get a unspoiled essay, order it on our website: OrderCustomPaper.com

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