Lawrence Sports Working Capital Policy

Lawrence Sports, a $20 million corporation, manufactures and distributes equipment and protective gear for various(a) sports. Lawrence Sports? lede distributor, Mayo Stores, sales 95% of Lawrence Sports equipment and currently is seek with midland occupations, which is causing a specie flow problem for Lawrence Sports. Lawrence Sports has 2 principal suppliers of raw materials, Gartner Products and Murray Leatherworks. Lawrence Sports has a $1.2 million business first step of credit with Central Bank, which has a variable disport respect of 10% to 16% depending on the current balance. Lawrence Sports needs to capture a monitoring system for accuracy in the fiscal resource and inventory control provide show how Lawrence has met the criteria even out in the lead the organization, by the organization. Lawrence Sports needs to re quantify the cash reserves for the long opportunities, which arise while renegotiating the terms of the interest rates and cash requirements with Central Bank. Working with Gartner and Murray, Lawrence needs to evaluate the terms of the themes collectible to bring maximum inventory with marginal payments. The credit policy with Mayo Stores also needs reevaluation to maximise revenues and minimize the accounts receivable. authoritative Working Capital PolicyCurrently, Lawrence Sports is suffering from a financial cranch caused by poor financial planning. nonetheless 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 glimpse of what might happen, but does non take into account seasonal or cyclical changes in spite of appearance an industry. In the reason of Lawrence Sports, the CFO, Stephanie Sanders, relies heavily on the forecast consistently 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 M! urray Leather plant life and with the Central... If you want to pick up a full essay, swan it on our website: OrderCustomPaper.com

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