Lawrence Sports Working Capital Policy

Lawrence Sports, a $20 million corporation, manufactures and distributes equipment and protective gear for various(a) sports. Lawrence Sports? star(p) distributor, Mayo Stores, sales 95% of Lawrence Sports equipment and currently is seek with informal occupations, which is causing a funds flow problem for Lawrence Sports. Lawrence Sports has twain principal suppliers of raw materials, Gartner Products and Murray Leatherworks. Lawrence Sports has a $1.2 million business green light of credit with Central Bank, which has a variable fire prise of 10% to 16% depending on the current balance. Lawrence Sports needs to take a monitoring system for accuracy in the fiscal resource and inventory control testament show how Lawrence has met the criteria make up ones mind in the lead the organization, by the organization. Lawrence Sports needs to re assess the cash reserves for the long opportunities, which arise while renegotiating the terms of the interest rates and cash requ irements with Central Bank. Working with Gartner and Murray, Lawrence needs to evaluate the terms of the themes collectible to bring maximum inventory with stripped-down payments. The credit policy with Mayo Stores also needs reevaluation to maximize revenues and minimize the accounts receivable. authoritative Working Capital PolicyCurrently, Lawrence Sports is suffering from a financial cranch caused by poor financial planning.

regular though Lawrence Sports has augured in past months, based on assumptions, the accounts receivables will remain at a constant level. Forecasting, used as a tool, provides a glim pse of what might happen, but does not take ! into account seasonal or cyclical changes at bottom an industry. In the reason of Lawrence Sports, the CFO, Stephanie Sanders, relies heavily on the forecast systematically disregarding how the forecast affects Mayo Stores. Lawrence Sports does not have a planned compute for possible lean times, which has caused problems with the creditors of Gartner Products and Murray Leather workings and with the Central... If you want to pick up a full essay, social club it on our website: OrderCustomPaper.com

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