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Running head: PROBLEM SOLUTION: LAWRENCE SPORTS INC.
Problem Solution: Lawrence Sports Inc.
Problem Solution: Lawrence Sports Inc.
In order make an accurate decision the evaluation of several areas should be observed. The maximization of shareholders wealth, financial statements, financial stability, and financial ratios, to name a few, can be utilized in order to make the most accurate decision possible. Financial distress could lead to bankruptcy when a corporation begins to acquire a significant amount of debt. In certain cases this may cause the managers to take on extra responsibilities. A number of possibilities will be altered and configured in order to achieve several possible scenarios of the company, the market and the economy. A firms operating exposure is determined by the structure of the markets and the firms ability to mitigate the effect of exchange rates by adjusting its markets, product mix and sourcing (Brealey, Myers and Allen, 2005).
This paper will make suggestions on how Lawrence Sports can develop a plan to maximize working capital policy and a cash budget. This paper will also show suggestions on how Lawrence Sports can develop metrics in order to monitor working capital management as well. Finally, there will be an example of a problem solving approach, which will demonstrate an approach, which will identify the problem, analyze alternatives and, create a solution.
Situation Analysis
Lawrence Sports is a $20 million revenue company, which manufactures and distributes equipment and protective gear for baseball, football, volleyball, and basketball. A Mayo store is the world's largest retailer, and happens to be Lawrence Sports primary customer. Lawrence Sport ...