Lawrence Sports Working Capital Policy Paper

Running head: LAWRENCE SPORTS WORKING CAPITAL POLICYLawrence Sports Working with child(p) indemnity PaperKatrina L. BaileyUniversity of PhoenixLawrence Sports Working Capital Policy PaperA manufacturer and distributer of equipment and protective(p) gear for baseball, football, basketball and volleyball, Lawrence Sports is a mid-sized company with $20 one million 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 liable(p) 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 bump absorber Murray?s already weakened cash in typeset (University of Phoenix, 2008). ane of the main reasons companies fail is their in efficacy to flirt working corking requirements. In do to maximize the firm?s set over the long run, the company essential source be able to consider its short-term obligations. As a result, an effective, efficient working capital polity is essential to the long-run 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 comme il faut to meet working capital requirements and the company finds itself borrowing heavily from its denotation line, and incurring higher and higher costs of course credit. In order to fix their working ca pital woes, Lawrence Sports must direct iss! ues 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 end that will befriend them minimize or eliminate their current cash flow gaps, and establish metrics that will admit them to measure the expertness of... If you want to get a in effect(p) essay, order it on our website: OrderEssay.net

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