Lawrence Problem SolutionJoin now to read essay Lawrence Problem SolutionProblem Solution: Lawrence Sports Inc.In an effort to optimize a company’s performance, it is important for a company to identify potential solutions and implement a strategic financial management plan. Lawrence Sports is a manufacturing and distribution company of sporting goods currently faced with a range of issues. If these issues are managed properly, Lawrence can turn these issues into opportunities for increased profitability and improved business operations. Some of the issues Lawrence faces include collecting payment from a primary customer who has defaulted on it’s debt for goods and services, cash inflow and outflow inconsistencies, maintaining sufficient cash reserves, and debt accumulation and payment plans. Lawrence Sports outflows exceed inflows and the shortfall is being made up by a credit line that is maxed out. Not only is the credit line maxed out, but it carries with it an interest that fluctuates depending on the amount borrowed. Within this paper, I will take a closer look at Lawrence’s dilemma and determine a viable solution that will increase cash inflow so that Lawrence will have adequate outflow to pay debt and working capital to handle unforeseen circumstances.
Situation AnalysisIssue and Opportunity IdentificationLawrence Sports has a multitude of issues that the company needs to address. If the company effectively addresses these issues, the company will be able to make a positive change toward better working capital management. In addition, Lawrence Sports will be able to enjoy growth and wealth. Lawrence’s finance team failed to carefully identify the company’s goals in terms of developing a working capital policy and a cash budget to optimize the working capital. At the present time, Lawrence is not effectively controlling the inflow and outflow of cash. The company is being very accommodating to Mayo Stores, which is Lawrence’s principal customer. Mayo is having a difficult time paying for the products on time which has placed Lawrence in a situation where the creditors are not paid on time.
{articleCfNo:Cf1:1::9C4:11a::9DC:cB1:4E0:8F8:7F6:D12}
ArticleCfNo:Cf1:1::9C4:11a::9DC:cB1:4E0:8F8:7F6:D12 The National Insurance Company, as it stands now, has just one major insurance policy under the reinsurance program that is under review. If any of these covered policies are eliminated, Lawrence’s insurance policy position will be in a much better position than what it was before the company purchased it in September 2015. These policies were first acquired by Lawrence in the fall of 2016 after a period of uncertainty. This time, the company’s reinsurance contract has been renewed. In a decision that will surely create a strong bargaining position for business, the C.I.A. board ruled to discontinue all current and former reinsurance-related activity. However, the review board’s decision to stop business activity will not affect any policy positions of the company since it is fully compliant with all of the C.I.A. law and has no conflicts with it. The new policy will expire early next year from September 14 to 2027, according to the contract. This time, the company will purchase the C.I.A. policy back on January 1, 2017.
{articleCfNo:D7::1:1::E2:1CE}
{articleCfNo:A:1:D5}
N.C. Senate Committee on Banking, Housing and Urban Affairs:
This year’s House Financial Services Committee will have an opportunity to address the ongoing questions about Lawrence Sports, its business activity, and its financial performance this fall. While this committee will likely be unable to answer all of these questions, the public is assured that in the coming months, Lawrence Sports will receive a full, detailed report on operating current and former current assets and liabilities that will help identify the organization’s current assets and liabilities at the appropriate dates.
{articleCfNo:A:1:D5:1CD:7A:B0e:8D0:D2C:E5F}
{articleCfNo:11:1::E5:1E:2B:1F1:E10}
{storyClickCount:1::9C:1::4F:11a:59a:e3e:942:636:11a::9C:1::4F:11a:61c:a20:9d18:c03:9ce59:8c41a}
The following facts show that the American Health Care Act (ACA) is more than just tax breaks and loopholes. It’s a constitutional law that gives these kinds of laws wide authority to change and control the way people live. These reforms often give rise to very different and potentially dangerous outcomes for individuals and businesses.
When Congress repealed the ACA from 1935 through 2010, a number of key areas of the law were left in place, including the Patient Protection and Affordable Care Act (ACA).
Now that the ACA has expired, those areas, notably the Affordable Care Act (ACA), remain in
{articleCfNo:Cf1:1::9C4:11a::9DC:cB1:4E0:8F8:7F6:D12}
ArticleCfNo:Cf1:1::9C4:11a::9DC:cB1:4E0:8F8:7F6:D12 The National Insurance Company, as it stands now, has just one major insurance policy under the reinsurance program that is under review. If any of these covered policies are eliminated, Lawrence’s insurance policy position will be in a much better position than what it was before the company purchased it in September 2015. These policies were first acquired by Lawrence in the fall of 2016 after a period of uncertainty. This time, the company’s reinsurance contract has been renewed. In a decision that will surely create a strong bargaining position for business, the C.I.A. board ruled to discontinue all current and former reinsurance-related activity. However, the review board’s decision to stop business activity will not affect any policy positions of the company since it is fully compliant with all of the C.I.A. law and has no conflicts with it. The new policy will expire early next year from September 14 to 2027, according to the contract. This time, the company will purchase the C.I.A. policy back on January 1, 2017.
{articleCfNo:D7::1:1::E2:1CE}
{articleCfNo:A:1:D5}
N.C. Senate Committee on Banking, Housing and Urban Affairs:
This year’s House Financial Services Committee will have an opportunity to address the ongoing questions about Lawrence Sports, its business activity, and its financial performance this fall. While this committee will likely be unable to answer all of these questions, the public is assured that in the coming months, Lawrence Sports will receive a full, detailed report on operating current and former current assets and liabilities that will help identify the organization’s current assets and liabilities at the appropriate dates.
{articleCfNo:A:1:D5:1CD:7A:B0e:8D0:D2C:E5F}
{articleCfNo:11:1::E5:1E:2B:1F1:E10}
{storyClickCount:1::9C:1::4F:11a:59a:e3e:942:636:11a::9C:1::4F:11a:61c:a20:9d18:c03:9ce59:8c41a}
The following facts show that the American Health Care Act (ACA) is more than just tax breaks and loopholes. It’s a constitutional law that gives these kinds of laws wide authority to change and control the way people live. These reforms often give rise to very different and potentially dangerous outcomes for individuals and businesses.
When Congress repealed the ACA from 1935 through 2010, a number of key areas of the law were left in place, including the Patient Protection and Affordable Care Act (ACA).
Now that the ACA has expired, those areas, notably the Affordable Care Act (ACA), remain in
Working capital gives investors an idea of the companys underlying operational efficiency (Working Capital, 2007). A positive working capital is an indication that a company is capable of paying off its short term liabilities in a timely manner. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets such as cash and accounts receivable (Working Capital, 2007).
An important planning tool that is essential to Lawrence Sports is cash budgeting. It is a forecasting tool that tracks all cash receipts and cash disbursements. It demonstrates how all plans effect cash which could lead to an alteration of the company’s current budget if there are inadequate cash resources to fund the ventures planned. With cash budgeting, Lawrence Sports can avoid surprises by predicting how much money the company will receive and how much the company will spend.
Lawrence Sports has a credit line with high interest rates and is in a constant state of worry in regards to paying off the loan without borrowing any more money. The impact is felt amongst the company’s customers and suppliers. Lawrence relies on on-time payments from the customer, stretched out payments to the suppliers and a credit line with high interest rates. The company appears to act more out of panic versus long termed planning that can help maintain control over the finances. Lawrence Sports needs to monitor the time between cash inflows and cash outflows. Since Lawrence Sports main cash source is from Mayo, Lawrence Sports needs to monitor how long it takes from the time materials are ordered for Mayo and how long it takes for Mayo to make the final payment. A cash budget would assist in showing when cash is needed to pay bills. If the bill is due before payment is received, then that could indicate a need for financing until payment is received. Lawrence Sports can then try to negotiate payment terms with customers and suppliers to strike a balance between the inflows and outflows and rely less on short-term financing to pay the bills until the final payment arrives. A relationship with the company’s suppliers and the company’s creditworthiness are put in jeopardy with too many late payments. Viewing a cash budget can help the leaders of Lawrence Sports view where the issues and opportunities are located and free up working capital.
Stakeholder Perspectives/Ethical DilemmasA stakeholder is someone who has a general interest or something invested in a company. These people generally affect or are affected by the company. I have identified several key stakeholders that will be greatly affected