... excess cash aside from the disbursements and expenses that are to be paid. In order for the Lawrence Sports organization to have adequate cash reserves, there needs to be the establishment of a cash budget. This cash budget will allow the financial managers to forecast the uses of cash for the company for cash needed for one month, three months, six months, and one year. This will give adequate levels of forecasting to establish the company with the needed cash during these intervals. Lawrence Sports had many weaknesses defined in the simulation. Those weaknesses include the following: 1. Having low cash available 2. Being unable to meet the interest payments on long and short term debt 3. Contracts that are losing money. 4. Decrease in the needed production caused by company cutbacks. When credit is granted to a customer as with Lawrence Sports credit with Mayo and Gardner they ...

See this essay or coursework document in full right now