HotEssays.com

Lawrence Sports Benchmarking

LAWRENCE SPORTS WORKING CAPITAL POLICY

Lawrence Sports Working Capital Policy Paper
Desiree Jarosko
University of Phoenix

Lawrence Sports Working Capital Policy Paper
The global marketplace requires companies continuously to improve in order to remain competitive. One of the essential tools for improvement is the ability to establish optimal working capital strategies and practices. Working capital practices include the management and delicate balance of accounts receivables, accounts payables, inventory levels, sources of short term borrowing and cash flows. The working capital manager at Lawrence Sports finds the company in an intricate position following defaults and delays on receivables from the Mayo Stores that have directly affected their working capital practices, namely debt payment. The result for such delinquent behavior on the part of the Mayo stores: a corresponding cash flow deficit forced on Lawrence Sports which has forced the company to take out large bank loans with high interest. Paying these loans back each month or carrying a balance into the next month has created a pressing need for the implementation of a better working cash flow policy for Lawrence Sports. For this assignment, the design and implementation of said policy will be discussed.
Working Capital Policy
Many companies today are faced with challenging decisions regarding ways to compete in the domestic and or international marketplace especially regarding a working capital policy. Consequently, in today’s changing financial business environment, a company must maintain financial viability by adhering to the basics of a business strategy which is to be profitable and continually increase revenues for shareholders. Lawrence Sports is no exception to the challenging decisions on a working capital policy. Lawrence Sports is a manufacturing and distribution company. Lawrence Sports makes and distributes equipment and...

View Full Essay