Laurence Sports Simulation

The Lawrence Sports Simulation

University of Phoenix

Corporate Finance

Fin 571

Javier Baella-Silva

The Lawrence Sports Simulation

Working Capital Alternatives:

Long Term Conservative Approach:

Long-term financing is used to finance all of the firm’s long-term assets, all of its permanent current assets, and some of its temporary current assets. Long-term financing is used to finance all of the firm’s long-term assets, all of its permanent current assets, and some of its temporary current assets. (Emery, Finnerty, & Stowe, 2007, p. 642) This form of financing will be used only when asset needs are low. This is when a firm invests its excess funds in marketable securities. This way they can use a acquire a safety margin.

As a leader of any organization, there comes a time when one must make tough choices. Everyone should have the best interests of a company in mind when making these tough choices. Yet, it will be impossible to satisfy the needs of everyone 100 percent of the time. Suppliers, customers, and stock and stake holders all depend on the sound decisions that should be make in order to not only guaranty profitability, but at times one’s survival. Any one of these aspects or all could be affected at a time. Learning how to maneuver through these situations is the key.

The Lawrence Sports simulation taught us one important thing. Often there can be no right answer to solving all the issues and satisfy everyone’s needs. In fact there comes a point that you must think only about your company even if this means that you knowingly affect outside entities. Mayo, who is the largest retailer in the nation, is Lawrence Sport’s main customer. This company seemed solid and even had plans for expansion internationally. Gartner Products is an important supplier of material and Murray Leathers Works provides some as well.

The decisions made affected all of them as well as Lawrence Sports. Mayo has defaulted on about 80% of its...