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Working Capital Policy
Essay specific features
Written by:
Arturo C
Date added:
March 6, 2014
Level:
University
Grade:
A
No of pages / words:
9 / 2294
Was viewed:
1388 times
Rating of current essay:
Essay content:
Lawrence Sports lacks capital working policies as well as broad selection of customers and suppliers.
Working Capital Policy
A vital tool in an effective capital working policy is cash budgeting. A cash budget is a way to monitor a businesses cash inflows and outflows, which in turn assist in predicting a company's ability to pay debt, expenses and can be used in planning short-term credit needs (Score, 2007)...
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Lawrence Sports has a credit line with high interest rates. The company 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 Sports relies on on-time payments from the customer, stretched out payments to the suppliers and a credit line with high interest rates...
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