Running head: PROBLEM SOLUTION: LAWRENCE SPORTS INC. Problem Solution: Lawrence Sports Inc. Veronica S. George University of Phoenix/MBA550 Problem Solution: Lawrence Sports Inc. Lawrence Sports generates $20 million in yearly revenue by manufacturing and distributing sporting goods protective gear for team sports. The main issue with Lawrence is that they depend solely on world leading retailer Mayo for the bulk of their revenue and only have two sources
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Liquidity ratios Liquidity ratios measure the ability of a company to repay its short-term debts and meet unexpected cash needs. Current ratio. The current ratio is also called the working capital ratio, as working capital is the difference between current assets and current liabilities. This ratio measures the ability of a company to pay its current obligations using current assets. The current ratio is calculated by dividing current assets by current liabilities.
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| | Accounting Cycle Accounting cycle | Accounting cycle refers to the process of recording accounting transactions. 1. Analyze transactions to identify the debit and credit components 2. Record journal entries in the accounting journal 3. Transfer debit and credit amounts to each account in accounting ledger 4. Prepare adjusting journal entries 5. Prepare a trial balance 6. Prepare financial statements by transferring balances from the trial balance to appropriate financial statements
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6. Managing the security of information 6.1 Control over data integrity, privacy and security 6.1.1 Information Classification: is the conscious decision to assign a level of sensitivity to data as it is being created, amended, enhanced, stored, or transmitted. The classification of the data should then determine the extent to which the data needs to be controlled / secured and is also indicative of its value in terms of Business Assets. The classification of data and documents is essential
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68 times = 23104000 1424000 = 16.22 times 9) Account Receivable Turnover = ___Net Sales_____ Account receivable = 24088000 2704000 = 8.91 times = 23104000 2281000 = 10.13 times 10) Average Collection Period = _________365 days________ Account Receiveable Turnover = 365 8.91 = 40.97 days = 365 10.13 = 36.03 days 11) Inventory Age = ____365 days____ Inventory Turnover = 365
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Project Report - Working Capital Management WORKING CAPITAL - Meaning of Working Capital Capital required for a business can be classified under two main categories via, 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments in these
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(http://finance.yahoo.com). See attachments Excel File: Case#3 Spreadsheet Task 2 Obtain the competitors' ratios for comparison from Yahoo! Finance (http://finance.yahoo.com). See attachments Excel File: Case#3 Spreadsheet Task 3 Compute the cash conversion cycle for BP for each of the last three years. To obtain the Average Inventory I took the inventory of the current year and the inventory of the previous year and divided it by 2. I decided for this method to generate the latest numbers for further calculations
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3258 SE PT E MB E R 26 , 200 8 R I CH A RD S. T E D L O W HEATHER BECKHAM Harrington Collection: Sizing Up the Active-Wear Market On January 22, 2008, financial results for Harrington Collection’s 2007 fiscal year were distributed to all senior executives. Harrington, a large manufacturer and retailer of high-end women’s apparel, had posted lackluster sales for the past three years and margins were now at an all time low. Sara Huey, Vice President of Strategic Planning, gathered her
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Project Report - Working Capital Management WORKING CAPITAL - Meaning of Working Capital [pic][pic][pic][pic][pic]Capital required for a business can be classified under two main categories via, 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land, building
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capital cycle are the purchasing of resources that relates to the acquisition of supplies and labor, such as the amount of inventory that is necessary to maintain realistic production schedules and the staff required to ensure adequate provision of services. Production and sale are virtually the same in the healthcare industry; there is no inventory of product of services. Billing represents the interval between the release or discharge of a patient and the generation of a bill. Collection represents
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