Lawrence Sports Working Capital Policy

Lawrence Sports, a $20 million corporation, manufactures and distributes equipment and protective gear for various(a) sports. Lawrence Sports? hint distributor, Mayo Stores, sales 95% of Lawrence Sports equipment and currently is seek with innate occupations, which is causing a funds flow problem for Lawrence Sports. Lawrence Sports has devil 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 intimacy prize of 10% to 16% depending on the current balance. Lawrence Sports needs to mystify a monitoring system for accuracy in the monetary resource and inventory control leave behind show how Lawrence has met the criteria fasten in the lead the organization, by the organization. Lawrence Sports needs to re prise the cash reserves for the long opportunities, which arise while renegotiating the terms of the interest rates and cash requireme nts 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 maximise revenues and minimize the accounts receivable. authoritative Working Capital PolicyCurrently, Lawrence Sports is suffering from a financial cranch caused by poor financial planning.

level(p) 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 in! to account seasonal or cyclical changes within 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 Murray Leather works and with the Central... If you want to pick up a full essay, stray it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper