Lawrence Sports

Lawrence Sports Simulation FIN 571 July 30, 2012 Lawrence Sports Simulation Lawrence Sports, a considerably significant manufacturing company that focuses its business organisation on the distribution of sporting gear and protective equipment has near concerns about their cash flow which pull up stakes require the memorial tablet to look at other strategies for managing their works capital. In the University of capital of Arizona scenario, (Lawrence Sports Simulation, n.d.) Mayo Stores is identified as a chain of in the lead retail stores and a principal customer of Lawrence Sports that contributes as much as 95% in gross revenue for Lawrence Sports annually. Mayo is in default on outstanding payments to Lawrence Sports for the exist two weeks and will not be able to subscribe good on payments for products received for another two weeks, which will cause additional stress on the financials for Lawrence Sports. Lawrence could employ a strategy of borrowing funds from the bank and deferring payment to several(prenominal) of its creditors but with rising interest rates this could prove to be a poor works capital management strategy. granted this information, team Bravo will examine alternate working capital strategies that could prove to be better solutions for Lawrence Sports.

These recommendations will be provided to the Chief Financial Officer for approval as a means to maximize profits and assist the organization in making sound working capital management decisions. on the job(p) Capital Strategies Given the financial climate Lawrence Sports is working in, Team Bravo recommends using an aggressive approach to managing their working capital. in that respect are several options to consider when developing a working capital management strategy, which range in risk from advanced to low. First Option: Additional Income Policy / Diversified Portfolio conclusion additional income will come from establishing a policy that reviews and conducts semestral comprehensive analysis of Lawrences working capital policies in an effort to better... If you want to get a full essay, regularise it on our website: Orderessay

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