Running head: PROBLEM SOLUTION: LAWRENCE SPORTS INC. Problem Solution: Lawrence Sports Inc. University of Phoenix Problem Solution: Lawrence Sports Inc. The financial officer of a company must maintain the cash budget in order to keep the profits steady. Analyzing cash budgets on a regular basis is the key, especially in the case of Lawrence Sports, Inc. The main issue for Lawrence Sports is that the company has relied on one customer, Mayo Stores, for a majority of its profits. Mayo Stores has defaulted on 80% of its payments, causing Lawrence Sports to delay payments to its suppliers. This paper will discus the decision for Lawrence Sports to enforce capital/collection policies, along with the creation of a new method of production, development of new products by the Research and Development team, and the need for finding new customers. The issues that have occurred and opportunities available for Lawrence Sports will also be analyzed. The problem will be reviewed, along with the end vision for the company, and the alternative solutions with the risks associated with them will be explored. The final optimal solution will be determined, along with how the plan will be implemented and how the results will be evaluated. Situation Analysis Issue and Opportunity Identification Lawrence Sports is a $20 million revenue company that manufacturers and distributes equipment and protective gear for baseball, football, basketball, and volleyball". Around 90% of Lawrence sports business comes solely come from Mayo Stores. Lawrence Sports receives its supplies from two main manufacturers; Gartner Products and Murray Leather Works. The working capital of Lawrence Sports shows that the company has a continuous unbalanced cash flow due to Mayo Stores not making their payments on time. ...