Lawrence Sports, a $20 million corporation, manufactures and distributes equipment and protective gear for various(a) sports. Lawrence Sports? stellar(a) distributor, Mayo Stores, sales 95% of Lawrence Sports equipment and currently is seek with infixed occupations, which is causing a exchange flow problem for Lawrence Sports. Lawrence Sports has cardinal principal suppliers of raw materials, Gartner Products and Murray Leatherworks. Lawrence Sports has a $1.2 million business endeavor of credit with Central Bank, which has a variable hobby measure out of 10% to 16% depending on the current balance. Lawrence Sports needs to obtain a monitoring system for accuracy in the financial resource and inventory control impart show how Lawrence has met the criteria primp in the lead the organization, by the organization. Lawrence Sports needs to re tax the cash reserves for the long opportunities, which arise while renegotiating the terms of the interest rates and cash requi rements with Central Bank. Working with Gartner and Murray, Lawrence needs to evaluate the terms of the themes collectible to bring maximum inventory with b roveline 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.
point 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 not take into a! ccount seasonal or cyclical changes inside 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 industrial plant and with the Central... If you want to pick up a full essay, order it on our website: OrderCustomPaper.com
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