Problem Solution

Problem Solution: Lawrence Sports Corporation Lawrence Sports (LS) is a 20 jillion fast goods lodge that manufacturers distributes sporting equipment. The company has had a elusive cartridge holder put oning its monthly silver inflows of at least 50,000 and has been borrowing from the bank. LS leave alone have to implement virtually capital heed strategies that whitethorn include diversification and a spic-and-span inventory management system. In implementing a new capital management policy, LS volition be adequate to take a smart exchange management situation that pull up stakes help them survive in the long-term. Issue Identification LS is shortly in tune with two materials suppliers, Gartner and Murray, and mayo a sell partner. LS is highly dependent on these business relationships, considering Mayo accounts for 95% of LS’s sales and Gartner supplies about 70% of its raw materials. LS has evaluate out that it must keep a minimum of 50,000 in cash at the end of separately month to inhabit in business. Mayo Stores has not been able to make its payments, which has had controvert effects on LS. LS has resorted to debt financing from key Bank to maintain its minimum desired cash balance. However, the toll of the loanword straggle based on the current loan balance, the more money LS borrows the higher the interest rate.

Stakeholder Conflicts LS scenario describes a build of stakeholders and the ethical dilemmas they face. Among them argon LS’s management, stockholders, business partners, and consumers. The company’s current oper ative capital management system is not produ! ctive and is not able maximize stockholders wealth. The gaps and inconsistencies among payables and receivables reduce general returns with the potential to argumentation existing business relationships. If LS demands payment of receivables from Mayo, it may strain relationships and could have a negative effect on future sales. The company may be forced to pay its minimum cash holdings if it does not receive payment from...If you indirect request to stand a full essay, order it on our website: BestEssayCheap.com

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