Lawrence Sports Working Capital Policy
Not what you're looking for?
Create a working capital policy for Lawrence Sports that addresses their cash management needs for the long term.
a. Compare Lawrence Sports' use of cash budgeting to the purpose of cash budgeting. Describe the weaknesses in Lawrence Sports' existing working capital policies that lead to their cash flow problem.
b. The policy must cover the following:
1) Cash balance requirements including cash reserves needed for long term opportunities that may arise.
2) Credit policy that balances Lawrence Sports desire to minimize accounts receivable and maximize revenue.
3) Supplier negotiation strategy for terms of payment that balances the costs to Lawrence Sports and their cash requirements.
4) Short term financing strategy to ensure availability of an adequate line of credit while minimizing the cost of that credit.
5) Metrics that will be used to monitor performance against the policy.
c. In a separate section of your paper, discuss the ethical implications of your working capital policy. Identify the conflicting interests of Lawrence Sports' stakeholders and how those interests are addressed by your policy.
Purchase this Solution
Solution Summary
Sample paper giving a working capital policy that addresses cash management long-term is attached in Word.
Solution Preview
This information and/or tables would guide you in better understanding the simulations/case study and assist you in writing your own paper. I have provided you with so much information that would help you in drafting your own paper. It is not the ...
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.