Problem Solution: Lawrence Sports Inc.
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University of Phoenix
MBA 550
Resource Optimization
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August 9, 2007
Problem Solution: Lawrence Sports Inc.
Lawrence Sports is a $20 million revenue company that manufactures and distributes equipment and protective gear for baseball, football, basketball, and volleyball. With a world-leading retailer as its major customer and two companies as its material source. Lawrence Sports not only had an established credit policy of its own portrayed by the relationships with its vendors, but Lawrence's major example involving credit policy was the established line of credit at Central Bank. In order to maintain its corporate policy of having accessible minimum cash balance of $50K available, Lawrence had to utilize its line of credit at the bank. However Central's credit policy stated that Lawrence's established borrowing limit was $1.2 million.
Lawrence heavily relied upon the use of cash during the low peak times of cash......
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