Submitted by irishgirl on March 9, 2008

• Category: Business
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Lawrence Sports Worksheet

Concept Application of Concept in the Simulation Reference to Concept in Reading
Stretching payables





Due to unexpected problems with its working capital, Lawrence Sports found it necessary to increase its short-term financing. This manipulation of cash flow was necessary to pay back a portion of its bank loan (University of Phoenix, 2008). One method of obtaining short-term financing is to stretch payables, or delay payment to vendors. Although this option helped Lawrence Sports pay off a portion of its loans, stretching the payables put stress on Lawrence’s relationships with its vendors.
Furthermore, it is likely that...

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