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Working Capital Management Concepts Worksheet
Working Capital Management Concepts Worksheet
|Concept |Application of Concept in the Simulation |Reference to Concept in Reading |
|Cash Flow |In the simulation, Lawrence Sports needs to consider cash to pay bills not |“The company records a profit at the |
| |profit in order to continue to operate. Lawrence Sports should create and |time of sale, but there is no cash |
| |implement a new tough credit policy to allow optimization of working capital.|inflow until the bills are paid,” |
| |This will ensure that Lawrence Sports has a constant cash flow. |(Brealey, Myers, Allen, 2005, p.24). |
| ...