Lawrence Sports is a $20 million revenue companionship that manufacturers and distributes sports equipment. The companion?s weekly cash budgeting is a balancing act between accounts receivable receipts and short-term financing. Typically this cause of budget would not present many problems but in the case of Lawrence Sports, their functional capital strategies are not optimized to support a corroboratory cash budget. This writing addresses Lawrence Sports use of a cash budget to optimize their working capital strategies. The make-up evaluates Lawrence Sports current working capital policies, suggests areas of improvement and provides metrics that the confederacy can use to evaluate the policies effectiveness. Finally, the paper will lose it the ethical implications of the working capital policies to ensure Lawrence Sports is addressing the interests of all stakeholders. The paper begins with an overview of working capital management and the best practices or policies a company can institute to optimize working capital.
on the job(p) Capital PolicyWorking Capital ManagementWorking capital management is the management of a company?s finances from the beginning of the cash changeover cycle to the end. Working capital is the cash needed to delineate the day-to-day operations. The implementation of best practices helps to ensure a company?s working capital remains a positive cash flow.
The following are best practices as define by REL Consult a company that specializes in working capital management and ensuring companies have the most efficient cash conversion cycle that is custom fit to their needs.
??Credit policies should be aligned with the company?s strategic goals.
?Payment toll should be minimized and adjusted to customer risk.
?Billing processes should be streamlines and void of duplicity.
?Collection procedures need to be proactive not reactive.
?Build relationship with large revenue customers.
?Dispute-resolution policies should be delimitate and handled efficiently.
?Review recurring disputes and find the root cause so that it...
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There are so many strategies that people apply to get manage their business and to arrange finance orWorking Capital this is just a instance for that.
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