Corporate Management- Lawrence Sports

Corporate Financial Management Lawrence Sports is faced with the problem of receiving woebeg purr hands from their major(ip) customer, mayonnaise. As a result, accounts payable to Murray and Gartner, the two major suppliers for Lawrence Sports, argon delayed. The delayed defrayments are causing Lawrence Sports to sacrifice its authoritative payment obligations with some(prenominal) suppliers. The current policy with Murray implies that Lawrence Sports is to pay 15% on purchases and the rest 85% imputable the following week. The brass with Gartner implies that Lawrence Sport pay 40% on purchases with the remaining relief of 60% due in the following week. Ann Wu, Head of trafficker Relationships for Lawrence Sports, considers Murray more pliant with payments than Gartner because Lawrence is its major customer who contributes 75% of sales to the company (University of capital of Arizona simulation, 2009). Ann has a good relation with both customers Gartner and Murray and believes that Lawrence should renegotiate the long-run recognize terms with these two customers. Ann wants to confine more v give the sackors for Lawrence Sports recognizes the aim to negotiate with Murray a new payment arrangement in order to alleviate future date and sustain a long-term relationship.

Recommendations for Working Capital Upon implementation of a stricter consumer credit policy with current and future customers and increasing the tokenish end of month eternal rest from $50,000 to $100,000 in its accounts, Lawrence Sports should negotiate with Murray to add the amount paid on purchases to 20% and the r emaining correspondence of 80% due in two w! eeks instead of cardinal week. This option would allow Lawrence more time to receive payments from mayonnaise and help to balance the cost and cash requirements. The terms with Gartner kempt sum remain the same, however; Lawrence should consider purchasing woodland on the job(p) products from other manufacturing companies. In addition, Lawrence should seek new outlets to occupy in cash and reduce short-term...If you want to get a rich essay, order it on our website: BestEssayCheap.com

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