Problem Solution Lawerence Sports

Problem Solution: Lawrence Sports Inc. Charles Baker MBA / 550 Instructor: Donna J. Adams Nov 21, 2006 Abstract In an effort to state financial viability in forthwiths environment, corporations are required to dumbfound to the basic fundamentals of economics. A connections primary aim is to consistently increase revenue for their shareholders. Lawrence Sports is a company that manufactures and distributes sports equipment and protecting(prenominal) gear. Lawrence has a cash immix problem do to its largest customer, mayo Stores not paying on time. In this paper we go away look at Lawrences financial problem and create a working large(p) policy for Lawrence Sports that address their cash focal point use ups for the long term. Problem Solution: Lawrence Sports Inc working(a) capital refers to the cash a business requires for day-to-day operations, or much specifically, for financing the conversion of raw materials into finished goods, which a company sells for payment. Working capital management involves the relationship between a firms short-term assets and its short-term liabilities. The importance of a well-rounded working capital cycle is crucial in todays business environment.

The goal of working capital management is to consider that a firm is able to continue its operations and that it has comfortable abilities to satisfy both maturing short-term debt and upcoming operational expenses. only put, good management of working capital will break cash, which will help improve profits and reduce risks (White Paper-Managing Working Capital, 2003). Lawrence Sports is a manufacturing and distribution company of sporting goods. Currently, the company is cladding several situations that offer opportunities as well as problems that need to be evaluated. First of all Lawrence Sports has a cash flow problem, whenever there is a deficit situation, money is borrowed from the bank to flow them over. Lawrence is basely robbing peter to pay Paul. If Lawrence continues to... If you want to get a full essay, order it on our website: Ordercustompaper.com

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