About 'current assets ratio formula'|How to deal with those Financial Ratios

Ｓｉｍｉｌａｒ               ｔｏ               ｏｔｈｅｒ               ａｒｔｉｃｌｅｓ               ｐｕｂｌｉｓｈｅｄ               ｔｏ               ｍｙ               ｐｒｏｆｉｌｅ,               ｔｈｉｓ               ａｒｔｉｃｌｅ               ｉｓ               ｂａｓｅｄ               ｏｎ               ａｐｐｌｉｃａｔｉｏｎ               ｏｆ               ｃｌａｓｓ               ｍａｔｅｒｉａｌｓ               ｔｏ               ａ               ｒｅｓｅａｒｃｈ               ｐａｐｅｒ               ｄｅｖｅｌｏｐｅｄ               ｆｏｒ               ａ               ｃｏｌｌｅｇｅ               ｃｏｕｒｓｅ.

Ｓｐｅｃｉｆｉｃａｌｌｙ,               ｔｈｉｓ               ｐａｐｅｒ               ｉｓ               ｗｒｉｔｔｅｎ               ｂａｓｅｄ               ｏｎ               ｔｈｅ               ｆｉｃｔｉｔｉｏｕｓ               ｏｒｇａｎｉｚａｔｉｏｎ               ｏｆ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ,               ｆｒｏｍ               ｔｈｅ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ               ａｎｄ               ａｐｐｌｉｅｓ               ｔｈｅ               ｃｏｎｃｅｐｔｓ               ｉｎｃｌｕｄｉｎｇ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｐｏｌｉｃｙ.

Ｔｈｅ               ｆｏｌｌｏｗｉｎｇ               ｉｎｆｏｒｍａｔｉｏｎ               ｉｎｃｌｕｄｅｓ               ｉｎｄｕｓｔｒｙ               ｂｅｓｔ               ｐｒａｃｔｉｃｅｓ,               ｅｔｈｉｃａｌ               ｉｍｐｌｉｃａｔｉｏｎｓ,               ｅｖａｌｕａｔｉｏｎ               ｏｆ               ｒｅｓｅａｒｃｈ,               ａｎｄ               ｅｖｅｎ               ｅｘｐｅｃｔｅｄ               ｒｅｌａｔｉｏｎｓｈｉｐｓ.

Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｐｏｌｉｃｙ               Ｐａｐｅｒ
               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｍａｎｕｆａｃｔｕｒｅｓ               ｓｐｏｒｔｓ               ｇｅａｒ,               "ｐｒｏｔｅｃｔｉｖｅ               ｇｅａｒ               ｆｏｒ               ｂａｓｅｂａｌｌ,               ｆｏｏｔｂａｌｌ,               ｂａｓｋｅｔｂａｌｌ,               ａｎｄ               ｖｏｌｌｅｙｂａｌｌ."               (Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｍａｎａｇｅｍｅｎｔ,               ｎ.ｄ.).

"Ａ               $20               ｍｉｌｌｉｏｎ               ｒｅｖｅｎｕｅ               ｃｏｍｐａｎｙ,"               ｄｉｓｔｒｉｂｕｔｉｏｎ               ｏｆ               ｔｈｅ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｇｅａｒ               ｉｓ               ｄｏｎｅ               ｔｈｒｏｕｇｈ               Ｍａｙｏ,               ｗｈｏ               ｉｓ               ｔｈｅ               "ｗｏｒｌｄ'ｓ               ｌｅａｄｉｎｇ               ｒｅｔａｉｌｅｒ."               (Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｍａｎａｇｅｍｅｎｔ,               ｎ.ｄ.).

Ｄｕｅ               ｔｏ               ｔｈｅ               ｓｔｒｏｎｇ               ｒｅｌａｔｉｏｎｓｈｉｐ               ｂｅｔｗｅｅｎ               Ｍａｙｏ               ａｎｄ               Ｌａｗｒｅｎｃｅ,               ｔｈｅｉｒ               ｒｅｓｐｅｃｔｉｖｅ               ｓｕｃｃｅｓｓ               ｉｓ               ｄｅｐｅｎｄｅｎｔ               ｏｎ               ｅａｃｈ               ｏｔｈｅｒ               ｉｎ               ａ               ｓｔｒｏｎｇ               ｗａｙ;               ｈｏｗｅｖｅｒ,               ｔｈｅ               ｉｍｐａｃｔ               ｏｎ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｖａｉｌａｂｌｅ               ｔｏ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ａｌｓｏ               ｄｉｒｅｃｔｌｙ               ｉｎｆｌｕｅｎｃｅｓ               ｔｈｅｉｒ               ｓｕｐｐｌｉｅｒｓ               -               Ｇａｒｔｎｅｒ               Ｐｒｏｄｕｃｔｓ               ａｎｄ               Ｍｕｒｒａｙ               Ｌｅａｔｈｅｒ               Ｗｏｒｋｓ.

Ｃｈａｎｇｅｓ               ｉｎ               ｈｏｗ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅ               ａｒｅ               ｃｏｌｌｅｃｔｅｄ               ａｎｄ               ｈｏｗ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ               ａｒｅ               ｐａｉｄ,               ｃａｎ               ｇｒｅａｔｌｙ               ａｆｆｅｃｔ               ｈｏｗ               ａ               ｃｏｍｐａｎｙ               ｉｓ               ａｂｌｅ               ｔｏ               ｓｕｃｃｅｅｄ               ｉｎ               ｍａｎａｇｉｎｇ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｎｄ               ｂｕｄｇｅｔｉｎｇ.

Ｗｈｉｌｅ               ｅｖｅｒｙ               ｃｏｍｐａｎｙ               ｓｔｒｉｖｅｓ               ｔｏ               ｂｅ               ｉｎ               ａ               ｐｏｓｉｔｉｏｎ               ｗｈｅｒｅ               ｅｍｅｒｇｅｎｃｉｅｓ               -               ｏｒ               ｕｎｅｘｐｅｃｔｅｄ               ｃｈａｎｇｅｓ               -               ｄｏ               ｎｏｔ               ｄｒａｓｔｉｃａｌｌｙ               ｉｎｆｌｕｅｎｃｅ               ｔｈｅ               ｃｏｍｐａｎｙ,               ｔｈｉｓ               ｉｓ               ｎｏｔ               ａｌｗａｙｓ               ｔｈｅ               ｃａｓｅ.

Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｉｓ               ｕｎｐｒｅｐａｒｅｄ               ｆｏｒ               ｃｈａｎｇｅｓ               ｉｎ               ｈｏｗ               Ｍａｙｏ               ｐａｙｓ               ｆｏｒ               ｐｒｏｄｕｃｔｓ               ａｎｄ               ｔｈｅ               ｒｅｓｕｌｔｉｎｇ               ｆｉｎａｎｃｉａｌ               ｓｉｔｕａｔｉｏｎ               ｃａｎ               ｃａｕｓｅ               ｔｈｅｉｒ               ｂｕｓｉｎｅｓｓ               ｔｏ               ｃｏｌｌａｐｓｅ               ｏｒ               ｒｅｄｕｃｅ               ｔｈｅ               ｓｔｒｏｎｇ               ｒｅｌａｔｉｏｎｓｈｉｐｓ               ｔｈｅ               ｃｏｍｐａｎｙ               ｈａｓ               ｗｉｔｈ               ｓｕｐｐｌｉｅｒｓ               ａｎｄ               Ｍａｙｏ.

Ａ               ｓｏｌｉｄ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｐｏｌｉｃｙ               ｗｉｌｌ               ｅｎａｂｌｅ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ｄｅｖｅｌｏｐ               ｆｉｎａｎｃｅｓ               ｉｎ               ａ               ｓｕｃｃｅｓｓｆｕｌ               ｗａｙ,               ｗｈｉｃｈ               ｒｅｄｕｃｅｓ               ｒｅｄｅｆｉｎｉｎｇ               ｐｏｌｉｃｙ               ｄｕｒｉｎｇ               ｔｉｍｅｓ               ｏｆ               ｓｈｏｒｔ-ｔｅｒｍ,               ｕｎｅｘｐｅｃｔｅｄ,               ｈａｒｄｓｈｉｐ.
               Ｔｏ               ｓｕｃｃｅｓｓｆｕｌｌｙ               ｍａｎａｇｅ               ｔｈｅ               ｃｕｒｒｅｎｔ               ｉｓｓｕｅｓ               ａｆｆｅｃｔｉｎｇ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｉｔ               ｉｓ               ｉｍｐｏｒｔａｎｔ               ｔｏ               ａｎａｌｙｚｅ               ｔｈｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ,               ｕｎｄｅｒｓｔａｎｄ               ｃａｓｈ               ｂｕｄｇｅｔｉｎｇ,               ｒｅｖｉｅｗ               ｂｅｓｔ               ｐｒａｃｔｉｃｅｓ               ｉｎ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ,               ｅｖａｌｕａｔｅ               ｒｉｓｋｓ               ａｎｄ               ｏｐｐｏｒｔｕｎｉｔｉｅｓ,               ａｎｄ               ｄｅｔｅｒｍｉｎｅ               ｔｈｅ               ｅｔｈｉｃａｌ               ｉｍｐｌｉｃａｔｉｏｎｓ               ｏｆ               ｃｏｍｐｅｔｉｎｇ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｌｔｅｒｎａｔｉｖｅｓ.

Ｄｅｖｅｌｏｐｍｅｎｔ               ｏｆ               ａ               ｓｕｃｃｅｓｓｆｕｌ               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｐｏｌｉｃｙ               ｆｏｒ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｉｎｃｌｕｄｅｓ:
               1.

Ｕｎｄｅｒｓｔａｎｄｉｎｇ               ｏｆ               ｔｈｅ               ｄｉｆｆｅｒｅｎｔ               ｆｉｎａｎｃｉａｌ               ｔｅｒｍｓ               ａｎｄ               ｍｅｔｒｉｃｓ.
               2.

Ｒｅｖｉｅｗｉｎｇ               "[ｃ]ｒｅｄｉｔ               ｂａｌａｎｃｅ               ｒｅｑｕｉｒｅｍｅｎｔｓ               ｉｎｃｌｕｄｉｎｇ               ｃａｓｈ               ｒｅｓｅｒｖｅｓ               ｎｅｅｄｅｄ               ｆｏｒ               ｌｏｎｇ               ｔｅｒｍ               ｏｐｐｏｒｔｕｎｉｔｉｅｓ               ｔｈａｔ               ｍａｙ               ａｒｉｓｅ."               (Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'...,               ｎ.ｄ.)
               3.

Ｄｅｖｅｌｏｐｉｎｇ               ａ               "[ｃ]ｒｅｄｉｔ               ｐｏｌｉｃｙ               ｔｈａｔ               ｂａｌａｎｃｅｓ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｄｅｓｉｒｅ               ｔｏ               ｍｉｎｉｍｉｚｅ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅ               ａｎｄ               ｍａｘｉｍｉｚｅ               ｒｅｖｅｎｕｅ."               (Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'...,               ｎ.ｄ.)
               4.

Ｃｒｅａｔｉｎｇ               ａ               "[ｓ]ｕｐｐｌｉｅｒ               ｎｅｇｏｔｉａｔｉｏｎ               ｓｔｒａｔｅｇｙ               ｆｏｒ               ｔｅｒｍｓ               ｏｆ               ｐａｙｍｅｎｔ               ｔｈａｔ               ｂａｌａｎｃｅｓ               ｔｈｅ               ｃｏｓｔｓ               ｔｏ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ａｎｄ               ｔｈｅｉｒ               ｃａｓｈ               ｒｅｑｕｉｒｅｍｅｎｔｓ."               (Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'...,               ｎ.ｄ.)
               5.

Ｎｅｇｏｔｉａｔｉｎｇ               ａ               "[ｓ]ｈｏｒｔ               ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ               ｓｔｒａｔｅｇｙ               ｔｏ               ｅｎｓｕｒｅ               ａｖａｉｌａｂｉｌｉｔｙ               ｏｆ               ａｎ               ａｄｅｑｕａｔｅ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ               ｗｈｉｌｅ               ｍｉｎｉｍｉｚｉｎｇ               ｔｈｅ               ｃｏｓｔ               ｏｆ               ｔｈａｔ               ｃｒｅｄｉｔ."               (Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'...,               ｎ.ｄ.)
               6.

Ｄｅｖｅｌｏｐｉｎｇ               ｑｕａｌｉｔｙ               '[ｍ]ｅｔｒｉｃｓ               ｔｈａｔ               ｗｉｌｌ               ｂｅ               ｕｓｅｄ               ｔｏ               ｍｏｎｉｔｏｒ               ｐｅｒｆｏｒｍａｎｃｅ               ａｇａｉｎｓｔ               ｔｈｅ               ｐｏｌｉｃｙ."               (Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'...,               ｎ.ｄ.)
               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｐｏｌｉｃｙ
               Ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｍｕｓｔ               ｂｅ               ｃａｒｅｆｕｌｌｙ               ｍａｎａｇｅｄ               ｔｏ               ｍａｉｎｔａｉｎ               ａ               ｂａｌａｎｃｅ               ｂｅｔｗｅｅｎ               ｐｏｓｓｉｂｌｅ               ｉｎｃｏｍｅ               ｆｒｏｍ               ｃａｓｈ               (ｓｕｃｈ               ａｓ               ｉｎｔｅｒｅｓｔ               ｇａｉｎｅｄ)               ａｎｄ               ｌｉｑｕｉｄｉｔｙ               ｏｆ               ａｓｓｅｔｓ.

Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｒｅｌｉｅｓ               ｕｐｏｎ               ｂａｎｋ               ｌｏａｎｓ               ｔｏ               ｍａｉｎｔａｉｎ               ｂａｌａｎｃｅｓ               ｉｎ               ｔｈｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ;               ｈｏｗｅｖｅｒ,               ｕｓｅ               ｏｆ               ｔｈｉｓ               ｃｒｅｄｉｔ               ｌｉｎｅ               ａｌｓｏ               ｉｎｃｕｒｓ               ａｄｄｉｔｉｏｎａｌ               ｃｏｓｔｓ.

Ｉｎ               ｏｒｄｅｒ               ｔｏ               ｂｅｃｏｍｅ               ｓｕｃｃｅｓｓｆｕｌ               ｗｉｔｈ               ｔｈｅ               ｂｅｎｅｆｉｔｓ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ,               ｉｔ               ｗｏｕｌｄ               ｂｅ               ｅｓｓｅｎｔｉａｌ               ｆｏｒ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｔｏ               ｄｅｖｅｌｏｐ               ｉｎｖｅｓｔｍｅｎｔｓ               ｗｈｉｃｈ               ａｒｅ               ｂｏｔｈ               ａｂｌｅ               ｔｏ               ｂｅ               ｌｉｑｕｉｄｉｔｙ               ｑｕｉｃｋｌｙ               ｉｆ               ｎｅｅｄ               ｓｈｏｕｌｄ               ａｒｉｓｅ,               ａｎｄ               ａｒｅ               ａｌｓｏ               ａｂｌｅ               ｔｏ               ｂｒｉｎｇ               ｉｎ               ａｄｄｉｔｉｏｎａｌ               ｐｒｏｆｉｔ               ｗｈｅｎ               ｔｈｅｒｅ               ｉｓ               ｎｏ               ｎｅｅｄ               ｆｏｒ               ｔｈｅ               ｃａｓｈ.

Ｏｎｅ               ｍｅｔｈｏｄ               ｔｏ               ｃｏｎｓｉｄｅｒ               ｗｏｕｌｄ               ｂｅ               ｉｎｖｅｓｔｍｅｎｔ               ｉｎｔｏ               ａ               ｈｉｇｈ               ｙｉｅｌｄｉｎｇ               ｓａｖｉｎｇｓ               ａｃｃｏｕｎｔ.

Ｈｏｗｅｖｅｒ,               ｂｅｆｏｒｅ               ｉｎｖｅｓｔｍｅｎｔ               ｂｅｇｉｎｓ               ｉｔ               ｉｓ               ｅｓｓｅｎｔｉａｌ               ｔｏ               ｈａｖｅ               ａ               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｐｏｌｉｃｙ               ｉｎ               ｅｆｆｅｃｔ               ｔｈａｔ               ｄｅｍｏｎｓｔｒａｔｅｓ               ｔｈｅ               ｎｅｅｄ               ａｎｄ               ｄｅｓｉｒｅｄ               ｇｒｏｗｔｈ               ｏｆ               ｔｈｅ               ｃｏｍｐａｎｙ.
               Ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｐｏｌｉｃｉｅｓ               ｉｎｃｌｕｄｅ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｉｎｖｅｓｔｍｅｎｔ               Ｐｏｌｉｃｙ               -               "ｐｏｌｉｃｉｅｓ               ｒｅｇａｒｄｉｎｇ               ｔｈｅ               ａｐｐｒｏｐｒｉａｔｅ               ｌｅｖｅｌ               ｏｆ               ｃｕｒｒｅｎｔ               ａｓｓｅｔｓ,"               ａｎｄ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｆｉｎａｎｃｉｎｇ               Ｐｏｌｉｃｙ               -               "ｐｏｌｉｃｉｅｓ               ｒｅｇａｒｄｉｎｇ               ｔｈｅ               ｕｓｅ               ｏｆ               ｓｈｏｒｔ-ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ"               (Ｒｅｎｓｓｅｌａｅｒ,               ｎ.ｄ.,               ｐａｒａ.

1).

Ｓｏｍｅ               ｅｘａｍｐｌｅｓ               ｏｆ               ｔｈｅｓｅ               ｐｏｌｉｃｉｅｓ               ｉｎｃｌｕｄｅ               ｒｅｌａｘｅｄ,               ｒｅｓｔｒｉｃｔｅｄ,               ａｎｄ               ｍｏｄｅｒａｔｅ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｉｎｖｅｓｔｍｅｎｔ               Ｐｏｌｉｃｉｅｓ               ｏｒ               ｍｏｄｅｒａｔｅ,               ａｇｇｒｅｓｓｉｖｅ,               ａｎｄ               ｃｏｎｓｅｒｖａｔｉｖｅ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｆｉｎａｎｃｉｎｇ               Ｐｏｌｉｃｉｅｓ               (Ｒｅｎｓｓｅｌａｅｒ,               ｎ.ｄ.).

Ｒｅｓｐｅｃｔｉｖｅｌｙ,               ｔｈｅｓｅ               ｐｏｌｉｃｉｅｓ               ｄｅｍｏｎｓｔｒａｔｅ               ａ               ｆｉｒｍ'ｓ               ｓｔｒａｔｅｇｉｅｓ               ｉｎ               ｒｅｇａｒｄｓ               ｔｏ               ｉｎｖｅｓｔｍｅｎｔｓ               ｏｒ               ｈｏｌｄｉｎｇｓ,               ａｓ               ｗｅｌｌ               ａｓ               ｃｕｒｒｅｎｔ               ａｓｓｅｔ               ｆｉｎａｎｃｉｎｇ,               ｓｈｏｒｔ-ｔｅｒｍ,               ｏｒ               ｌｏｎｇ-ｔｅｒｍ.

Ａｓ               ｂｏｔｈ               ｏｆ               ｔｈｅｓｅ               ｔｙｐｅｓ               ｏｆ               ｐｏｌｉｃｉｅｓ               ｍａｋｅ               ｕｐ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｐｏｌｉｃｉｅｓ,               ｉｔ               ｉｓ               ｉｍｐｅｒａｔｉｖｅ               ｔｈａｔ               ｔｈｅ               ｔｗｏ               ｔｙｐｅｓ               ｏｆ               ｐｏｌｉｃｉｅｓ               ａｒｅ               ｃｏｍｂｉｎｅｄ               ｔｏ               ｍａｘｉｍｉｚｅ               ｆｉｒｍ               ｗｅａｌｔｈ               ａｎｄ               ｓｕｃｃｅｓｓｆｕｌ               ｃｏｍｐａｎｙ               ｇｒｏｗｔｈ.

Ｉｎ               ｒｅｖｉｅｗｉｎｇ               ｃａｓｈ               ｂａｌａｎｃｅ               ｒｅｑｕｉｒｅｍｅｎｔｓ               ｆｏｒ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｉｔ               ｉｓ               ｉｍｐｅｒａｔｉｖｅ               ｔｏ               ｉｎｃｌｕｄｅ               ｃａｓｈ               ｒｅｓｅｒｖｅｓ               ｎｅｅｄｅｄ               ｆｏｒ               ｌｏｎｇ               ｔｅｒｍ               ｏｐｐｏｒｔｕｎｉｔｉｅｓ;               ｈｏｗｅｖｅｒ,               ａｔ               ｔｈｉｓ               ｔｉｍｅ               ｔｈｅｒｅ               ａｒｅ               ｎｏ               ｐｏｌｉｃｉｅｓ               ｉｎ               ｐｌａｃｅ               ｗｈｉｃｈ               ｄｏ               ｔｈｉｓ               ｆｏｒ               ｔｈｉｓ               ｃｏｍｐａｎｙ.

Ｏｎｅ               ｍａｊｏｒ               ｉｍｐａｃｔ               ｏｎ               ｃａｓｈ               ｉｓ               ｔｈｅ               ｃａｓｈ               ｃｏｎｖｅｒｓｉｏｎ               ｃｙｃｌｅ.
               Ｔｈｅ               ｆｉｒｍ'ｓ               ｃａｓｈ               ｃｏｎｖｅｒｓｉｏｎ               ｃｙｃｌｅ               ｉｓ               ｄｅｆｉｎｅｄ               ａｓ               "ｔｉｍｅ               ｌａｐｓｅ               ｂｅｔｗｅｅｎ               ｐｕｒｃｈａｓｅ               ａｎｄ               ｉｎｃｏｍｅ:               ｔｈｅ               ａｖｅｒａｇｅ               ｐｅｒｉｏｄ               ｏｆ               ｔｉｍｅ               ｂｅｔｗｅｅｎ               ｔｈｅ               ｐｕｒｃｈａｓｅ               ｏｆ               ｉｎｖｅｎｔｏｒｙ               ａｎｄ               ｔｈｅ               ｒｅｃｅｉｐｔ               ｏｆ               ｃａｓｈ               ｆｒｏｍ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ."               (Ｅｎｃａｒｔａ,               2008).

Ｔｈｅ               ｃａｓｈ               ｃｏｎｖｅｒｓｉｏｎ               ｃｙｃｌｅ               ｉｓ               ａｎ               ｅｓｓｅｎｔｉａｌ               ｆａｃｔｏｒ/ｒａｔｉｏ               ｉｎ               ｅｖａｌｕａｔｉｎｇ               ｈｏｗ               ｗｅｌｌ               ｔｈｅ               "ｃｏｍｐａｎｙ               ｉｓ               ｍａｎａｇｉｎｇ               ｉｔｓ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ."               (Ｓｃｈｅｉｎ,               2004,               ｐａｒａ.

3).

Ｔｈｉｓ               ｒａｔｉｏ               ｉｓ               ｄｅｆｉｎｅｄ               ａｓ               ＣＣＣ               =               ＩＯＤ               +               ＡＲＯ               -               ＡＰＯ,               ｗｈｉｃｈ               ｉｓ               "Ｉｎｖｅｎｔｏｒｙ               ｉｎ               ｄａｙｓ               (ＩＯＤ)",               "Ａｃｃｏｕｎｔｓ               Ｒｅｃｅｉｖａｂｌｅ               ｏｕｔｓｔａｎｄｉｎｇ               ｉｎ               ｄａｙｓ               (ＡＲＯ)",               ａｎｄ               "Ａｃｃｏｕｎｔｓ               Ｐａｙａｂｌｅ               ｏｕｔｓｔａｎｄｉｎｇ               ｉｎ               ｄａｙｓ"               (Ｓｃｈｅｉｎ,               2004,               ｐａｒａ.

3).

Ｈｏｗｅｖｅｒ,               ｔｈｉｓ               ｆｏｒｍｕｌａ               ｃａｎ               ａｌｓｏ               ｂｅ               ｄｅｓｃｒｉｂｅｄ               ａｓ               ＣＣＣ               =               ＤＩＯ               +               ＤＳＯ               -               ＤＰＯ,               ｗｈｅｒｅ               ＤＩＯ               ｉｓ               ｔｈｅ               ｄａｙｓ               ｏｆ               ｉｎｖｅｎｔｏｒｙ               ｏｕｔｓｔａｎｄｉｎｇ,               ＤＳＯ               =               ｄａｙｓ               ｏｆ               ｓａｌｅｓ               ｏｕｔｓｔａｎｄｉｎｇ,               ａｎｄ               ＤＰＯ               ｗｈｉｃｈ               ｉｓ               ｔｈｅ               ｄａｙｓ               ｏｆ               ｐａｙａｂｌｅｓ               ｏｕｔｓｔａｎｄｉｎｇ               (Ｂｒｅａｌｅｙ,               Ｍｙｅｒｓ,               ａｎｄ               Ａｌｌｅｎ,               2005).
               Ｔｈｉｓ               ｒａｔｉｏ               ｃａｎ               ｈｅｌｐ               ｔｏ               ｄｅｔｅｒｍｉｎｅ               ｗｈｅｒｅ               ｍｏｎｅｙ               ｓｈｏｕｌｄ               ｂｅ               ａｐｐｌｉｅｄ               ａｎｄ               ｈｏｗ               ｐａｙｍｅｎｔｓ               ｓｈｏｕｌｄ               ｂｅ               ｒｅｃｅｉｖｅｄ               ｏｒ               ｐａｉｄ               ｏｕｔ               (ｏｎ               ａｃｃｏｕｎｔｓ).

Ｔｏ               ｍａｉｎｔａｉｎ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               -               ｗｈｉｃｈ               ｉｓ               ｕｓｅｄ               ｔｏ               ｃｏｖｅｒ               ｅｘｐｅｎｓｅｓ               -               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｈａｓ               ａ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ               ｗｉｔｈ               ｔｈｅ               ｂａｎｋ;               ｈｏｗｅｖｅｒ,               ｔｈｅ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ               ｃｏｍｅｓ               ｗｉｔｈ               ａｎ               ｉｎｃｒｅａｓｉｎｇ               ｉｎｔｅｒｅｓｔ               ｒａｔｅ,               ｗｈｉｃｈ               ｄｅｃｒｅａｓｅｓ               ｔｈｅ               ａｐｐｅａｌ               ｏｆ               ｕｓｉｎｇ               ｔｈｅ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ.

Ｃａｓｈ               ｃｏｎｖｅｒｓｉｏｎ               ｃｙｃｌｅｓ               ａｎｄ               ｔｈｅ               ｃｏｓｔ               ｏｆ               ｇｏｏｄｓ               ａｒｅ               ｅｆｆｅｃｔｅｄ               ｂｙ               ｔｈｅ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ.

Ｆｏｒ               ｉｎｓｔａｎｃｅ,               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｓｕｆｆｅｒｅｄ               ｈｅａｖｙ               ｈｉｔｓ               ｔｏ               ｔｈｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｄｕｅ               ｔｏ               ｔｈｅ               ｐｒｉｍａｒｙ               ｂｕｙｅｒ               ｈａｖｉｎｇ               ｔｈｅｉｒ               ｏｗｎ               ｐｒｏｂｌｅｍｓ               ｗｉｔｈ               ｍａｋｉｎｇ               ｐａｙｍｅｎｔ.

Ｃｏｌｌｅｃｔｉｏｎ               ｐｏｌｉｃｙ               ｅｎａｂｌｅｓ               ｃｏｍｐａｎｉｅｓ               ｔｏ               ｐｒｅｄｅｔｅｒｍｉｎｅ               ｈｏｗ               ｔｈｅｙ               ｗｉｌｌ               ｈａｎｄｌｅ               ａ               ｃｏｍｐａｎｙ               ｏｒ               ｃｌｉｅｎｔ               ｗｈｏ               ｆａｌｌｓ               ｂｅｈｉｎｄ               ｉｎ               ｔｈｅｉｒ               ｐａｙｍｅｎｔｓ;               ｈｏｗｅｖｅｒ,               ｓｏｍｅｔｉｍｅｓ               ｉｔ               ｉｓ               ｄｉｆｆｉｃｕｌｔ               ｔｏ               ｆｏｒｃｅ               ａ               ｃｏｍｐａｎｙ               ｔｏ               ｐａｙ               ｍｏｎｅｙ               ｉｆ               ｔｈｅｉｒ               ｃｏｍｐａｎｙ               ｉｓ               ａｔ               ｒｉｓｋ               ｏｆ               ｆｉｎａｎｃｉａｌ               ｉｓｓｕｅｓ,               ｗｈｉｃｈ               ｃｏｕｌｄ               ｃａｕｓｅ               ａ               ｃｌｏｓｉｎｇ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ｃｏｍｐａｎｉｅｓ               ｐｒｏｔｅｃｔ               ｔｈｅｍｓｅｌｖｅｓ               ｆｒｏｍ               ｄｅｃｒｅａｓｅｓ               ｉｎ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ               ｂｙ               ｃｒｅａｔｉｎｇ               ｔｅｒｍｓ               ｏｆ               ｓａｌｅ               ｔｈａｔ               ｓｔｒｉｃｔｌｙ               ｃｏｎｔｒｏｌ               ｈｏｗ               ｐａｙｍｅｎｔｓ               ｗｉｌｌ               ｂｅ               ｍａｄｅ               ｉｎ               ｐｕｒｃｈａｓｅｓ.
               Ｏｎｅ               ｗａｙ               ｔｏ               ｐｒｅｐａｒｅ               ｆｏｒ               ｕｎｅｘｐｅｃｔｅｄ               ｃｈａｎｇｅｓ               ｉｎ               ｃｏｌｌｅｃｔｉｏｎ               ｏｆ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅ               ｉｓ               ｔｈｅ               ｄｅｖｅｌｏｐｍｅｎｔ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ.

Ｉｎｖｅｓｔｏｒｗｏｒｄｓ.ｃｏｍ               ｄｅｆｉｎｅｓ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｓ               "Ｃｕｒｒｅｎｔ               ａｓｓｅｔｓ               ｍｉｎｕｓ               ｃｕｒｒｅｎｔ               ｌｉａｂｉｌｉｔｉｅｓ...ｍｅａｓｕｒｅｓ               ｈｏｗ               ｍｕｃｈ               ｉｎ               ｌｉｑｕｉｄ               ａｓｓｅｔｓ               ａ               ｃｏｍｐａｎｙ               ｈａｓ               ａｖａｉｌａｂｌｅ               ｔｏ               ｂｕｉｌｄ               ｉｔｓ               ｂｕｓｉｎｅｓｓ."               (ｎ.ｄ.)               Ｔｈｅ               Ｎａｔｉｏｎａｌ               Ｂａｎｋ               ｏｆ               Ｃａｎａｄａ               ｒｅｆｅｒｓ               ｔｏ               ｓｈｏｒｔ               ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ               ａｓ               "ｉｄｅａｌ               ｆｏｒ               ｆｉｎａｎｃｉｎｇ               ｉｎｖｅｎｔｏｒｙ,               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ,               ａｎｄ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅ."               (Ｆｉｎａｎｃｉｎｇ               Ｓｏｌｕｔｉｏｎｓ,               2001,               ｐａｒａ.

1).

Ｔｈｅ               ｉｎｔｅｒａｃｔｉｏｎ               ｂｅｔｗｅｅｎ               ｔｈｅｓｅ               ｔｗｏ               ｉｔｅｍｓ               -               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｎｄ               ｓｈｏｒｔ-ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ               ｉｓ               ｔｈａｔ               ｔｈｅ               ｆｉｎａｎｃｉｎｇ               ｉｓ               ｏｆｔｅｎ               ｕｓｅｄ               ｔｏ               ｐｒｏｖｉｄｅ               ｔｈｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｉｓ               ｎｅｃｅｓｓａｒｙ               ｆｏｒ               ｔａｋｉｎｇ               ｏｎ               ｎｅｗ               ｐｒｏｊｅｃｔｓ               ａｎｄ               ｅｆｆｅｃｔｉｖｅ               ｉｎ               ｄｅｍｏｎｓｔｒａｔｉｎｇ               ｃｏｍｐａｎｙ               ｓｔａｂｉｌｉｔｙ               ａｎｄ               ｅｆｆｅｃｔｉｖｅ               ｍｏｎｅｙ               ｍａｎａｇｅｍｅｎｔ               ｗｈｅｎ               ｓｅｅｋｉｎｇ               ｏｕｔ               ｌｏｎｇ               ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ               ｏｐｔｉｏｎｓ.

Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｕｓｅｓ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｔｏ               ｐａｙ               ｏｐｅｒａｔｉｎｇ               ｃｏｓｔｓ               ａｎｄ               ｖｅｎｄｏｒｓ;               ｈｏｗｅｖｅｒ,               ｔｈｅｉｒ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｉｓ               ｓｕｂｓｉｄｉｚｅｄ               ｂｙ               ａ               ｃｒｅｄｉｔ               ｌｉｎｅ.

Ｉｎ               ｏｒｄｅｒ               ｆｏｒ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｔｏ               ｍａｉｎｔａｉｎ               ａ               ｓｕｃｃｅｓｓｆｕｌ               ｄｅｇｒｅｅ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ,               ｔｈｅｙ               ｈａｖｅ               ｔｏ               ｍａｉｎｔａｉｎ               ｐａｙｍｅｎｔｓ               ｆｒｏｍ               Ｍａｙｏ,               ａｔ               ａｌｌ               ｃｏｓｔｓ;               ａｎｄ               ｔｒｙ               ｔｏ               ｒｅｄｕｃｅ               ｐａｙｍｅｎｔｓ               ｔｏ               ｖｅｎｄｏｒｓ               ｉｆ               ｃａｐｉｔａｌ               ｄｅｃｒｅａｓｅｓ.

Ｉｎ               ｓｉｔｕａｔｉｏｎｓ               ｗｈｅｒｅ               ｔｈｉｓ               ｉｓ               ｎｏｔ               ｐｏｓｓｉｂｌｅ,               ｉｔ               ｉｓ               ｉｍｐｏｒｔａｎｔ               ｔｏ               ｈａｖｅ               ｏｔｈｅｒ               ｆｏｒｍｓ               ｏｆ               ｃａｓｈ               ａｖａｉｌａｂｌｅ               ｂｙ               ｌｉｑｕｉｄａｔｉｏｎ               ａｎｄ               ｃａｒｅｆｕｌ               ｃａｓｈ               ｂｕｄｇｅｔｉｎｇ               ｐｏｌｉｃｉｅｓ               ａｎｄ               ｓｙｓｔｅｍｓ.
               Ｃａｓｈ               ｂｕｄｇｅｔｉｎｇ               ｉｓ               ｅｓｓｅｎｔｉａｌ               ｔｏ               ｓｕｃｃｅｓｓｆｕｌ               ｆｉｎａｎｃｉａｌ               ｍａｎａｇｅｍｅｎｔ               ｂｅｃａｕｓｅ               ｉｔ               ｉｓ               ｔｈｅ               ｐｒｉｍａｒｙ               ｔｏｏｌ               ｆｏｒ               ｓｈｏｒｔ               ｔｅｒｍ               ｆｉｎａｎｃｉａｌ               ｐｌａｎｎｉｎｇ               ａｎｄ               ｅｎａｂｌｅｓ               ｓｕｃｃｅｓｓｆｕｌ               ｆｏｒｅｃａｓｔｉｎｇ.

Ｅｖｅｒｙｏｎｅ               ｕｓｅｓ               ｃａｓｈ               ｂｕｄｇｅｔｉｎｇ;               ｈｏｗｅｖｅｒ,               ｈｏｗ               ｓｕｃｃｅｓｓｆｕｌ               ｔｈｅ               ｂｕｄｇｅｔｉｎｇ               ｉｓ               ｄｅｐｅｎｄｓ               ｏｎ               ｔｒａｃｋｉｎｇ               ｃａｓｈ               ｉｎｆｌｏｗ               -               ｓａｌｅｓ               ａｎｄ               ｏｔｈｅｒ               ｒｅｖｅｎｕｅ               -               ａｎｄ               ｃａｓｈ               ｏｕｔｆｌｏｗ               -               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ,               ｌａｂｏｒ/ｏｐｅｒａｔｉｎｇ               ｅｘｐｅｎｓｅｓ,               ｃａｐｉｔａｌ               ｅｘｐｅｎｄｉｔｕｒｅｓ,               ｔａｘｅｓ,               ｉｎｔｅｒｅｓｔ               ａｎｄ               ｄｉｖｉｄｅｎｄ               ｐａｙｍｅｎｔｓ               (Ｂｒｅａｌｅｙ,               Ｍｙｅｒｓ,               &               Ａｌｌｅｎ,               2005).
               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｐｕｒｃｈａｓｅｄ               ｒａｗ               ｍａｔｅｒｉａｌｓ               ｆｒｏｍ               ｃｏｍｐａｎｉｅｓ               ｏｎ               ａ               ｃｒｅｄｉｔ               ｐｏｌｉｃｙ               ｔｈａｔ               ｅｎａｂｌｅｄ               ｔｈｅ               ｐｒｏｄｕｃｔｓ               ｔｏ               ｂｅ               ｏｒｄｅｒｅｄ               ａｎｄ               ｐａｉｄ               ｆｏｒ               ａｔ               ａ               ｌａｔｅｒ               ｄａｔｅ.

Ｔｈｉｓ               ｅｎａｂｌｅｄ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ｃｏｎｔｉｎｕｅ               ｔｏ               ｇｅｔ               ｒａｗ               ｍａｔｅｒｉａｌｓ               ｗｈｅｎ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｂｅｃａｍｅ               ｓｈｏｒｔ;               ｈｏｗｅｖｅｒ,               ｉｔ               ａｌｓｏ               ｅｎａｂｌｅｄ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ｃｏｎｔｉｎｕｅ               ｔｏ               ｂｕｉｌｄ               ｕｐ               ｄｅｂｔ.

Ｆｏｒ               ｉｎｓｔａｎｃｅ,               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｄｅｂｔ               ｔｏ               ｔｈｅ               ｂａｎｋ               ｉｎｃｒｅａｓｅｄ               ｅａｃｈ               ｔｉｍｅ               ｔｈｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｄｉｄ               ｎｏｔ               ｒｅａｃｈ               ｔｈｅ               50               ｉｔ               ｎｅｅｄｅｄ.

Ｉｎ               ｏｒｄｅｒ               ｔｏ               ｂｅｔｔｅｒ               ｅｘａｍｉｎｅ               ｈｏｗ               ｔｈｅ               ｃｒｅｄｉｔ               ｐｏｌｉｃｙ               ｓｈｏｕｌｄ               ｂｅ               ｈａｎｄｌｅｄ               ｉｎ               ｔｈｅ               ｆｕｔｕｒｅ,               ｉｔ               ｗｏｕｌｄ               ｂｅ               ａｐｐｌｉｃａｂｌｅ               ｔｏ               ｅｘａｍｉｎｅ               ｏｔｈｅｒ               ｍｅｔｈｏｄｓ               ｏｆ               ｓｈｏｒｔ-ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ.
               Ｄｅｖｅｌｏｐｍｅｎｔ               ｏｆ               ａ               ｃｒｅｄｉｔ               ｐｏｌｉｃｙ               ｔｈａｔ               ｂａｌａｎｃｅｓ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｄｅｓｉｒｅ               ｔｏ               ｍｉｎｉｍｉｚｅ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅ               ａｎｄ               ｍａｘｉｍｉｚｅ               ｒｅｖｅｎｕｅ               ｉｓ               ｃｕｒｒｅｎｔｌｙ               ａｎ               ａｇｇｒｅｓｓｉｖｅ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｆｉｎａｎｃｉｎｇ               Ｐｏｌｉｃｙ,               ｗｈｉｃｈ               ｕｓｅｓ               ｓｈｏｒｔ-ｔｅｒｍ               ｄｅｂｔ               ｆｒｏｍ               ａ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ               ｗｉｔｈ               ｔｈｅ               ｂａｎｋ.

(Ｒｅｎｓｓｅｌａｅｒ,               ｎ.ｄ.).

Ｗｈｉｌｅ               ｔｈｅｉｒ               ｓｈｏｒｔ-ｔｅｒｍ               ｄｅｂｔ               ｉｓ               ｆｕｎｄｅｄ               ｂｙ               ａ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ,               ｉｔ               ｉｓ               ｎｏｔ               ｓｕｆｆｉｃｉｅｎｔ               ｉｎ               ｔｉｍｅｓ               ｗｈｅｒｅ               ｎｏ               ｒｅｖｅｎｕｅ               ｉｓ               ａｃｃｒｕｅｄ               ａｎｄ               ｔｈｅｉｒ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ               ｗｉｔｈ               ｓｕｐｐｌｉｅｒｓ               ｉｓ               ｔｈｅｎ               ｐｕｔ               ｉｎ               ｊｅｏｐａｒｄｙ.

Ｒｅｖｉｅｗ               ｏｆ               ｔｈｅｓｅ               ｃｕｒｒｅｎｔ               ｐｏｌｉｃｉｅｓ               ｓｕｇｇｅｓｔｓ               ｔｈａｔ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｗｏｕｌｄ               ｂｅ               ｍｏｒｅ               ｓｕｃｃｅｓｓｆｕｌ               ｗｉｔｈ               ａ               ｃｏｎｓｅｒｖａｔｉｖｅ               ａｐｐｒｏａｃｈ               ｗｉｔｈ               ｔｈｅ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｆｉｎａｎｃｉｎｇ               ｐｏｌｉｃｙ               ａｓ               ｔｈｉｓ               ｄｅｖｅｌｏｐｓ               ｍａｒｋｅｔａｂｌｅ               ｓｅｃｕｒｉｔｉｅｓ               ａｎｄ               ｌｏｎｇ-ｔｅｒｍ               ｄｅｂｔ               ｗｈｉｌｅ               ｒｅｄｕｃｉｎｇ               ｓｈｏｒｔ-ｔｅｒｍ               ｄｅｂｔ               ｔｙｐｉｃａｌｌｙ               ｒｅｌｉｅｄ               ｕｐｏｎ               ｄｕｒｉｎｇ               "ｓｅａｓｏｎａｌ               ｆｌｕｃｔｕａｔｉｏｎｓ"               ａｎｄ               ｐｒｏｖｉｄｅｓ               ｆｏｒ               "ａ               ｌｏｗ               ｒｉｓｋ               ａｐｐｒｏａｃｈ               ｗｉｔｈ               ｌｏｗ               ｒｅｔｕｒｎ               ｐｏｔｅｎｔｉａｌ."               (Ｒｅｎｓｓｅｌａｅｒ,               ｎ.ｄ.,               ｐａｒａ.

9).

Ｗｈｉｌｅ               ｌｏｗ               ｒｅｔｕｒｎ               ｍａｙ               ｓｅｅｍ               ｕｎａｐｐｅａｌｉｎｇ,               ｉｔ               ｄｏｅｓ               ｕｌｔｉｍａｔｅｌｙ               ｒｅｄｕｃｅ               ｉｎｃｒｅａｓｅｄ               ｃｏｓｔｓ               ｏｆ               ｓｈｏｒｔ-ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ               ｓｕｃｈ               ａｓ               ｉｎｔｅｒｅｓｔ               ｒａｔｅｓ.
               Ｃａｓｈ               ｍａｎａｇｅｍｅｎｔ               ｅｎａｂｌｅｓ               ａ               ｃｏｍｐａｎｙ               ｔｏ               ｄｅｖｅｌｏｐ               ｍｏｎｅｙ               ｆｏｒ               ｆｕｔｕｒｅ               ｐｒｏｊｅｃｔｓ               ａｎｄ               ｅｘｐｅｎｓｅｓ.

Ｗｈｉｌｅ               ｍｏｓｔ               ｃｏｍｐａｎｉｅｓ               ｐｒｅｆｅｒ               ｎｏｔ               ｔｏ               ｈａｖｅ               ｌａｒｇｅ               ａｍｏｕｎｔｓ               ｏｆ               ｃａｓｈ               "ｌａｙｉｎｇ               ａｂｏｕｔ"               ｉｔ               ｉｓ               ａｌｓｏ               ｉｍｐｏｒｔａｎｔ               ｔｈａｔ               ｔｈｅ               ｃａｓｈ               ｃａｎ               ｂｅ               ｕｓｅｄ               ｓｈｏｕｌｄ               ｔｈｅ               ｎｅｅｄ               ａｒｉｓｅ.

Ｍａｎｙ               ｃｏｍｐａｎｉｅｓ               ｄｅｖｅｌｏｐ               ｃａｓｈ               ｉｎ               ｗａｙｓ,               ｗｈｉｃｈ               ｗｉｌｌ               ｐｒｏｄｕｃｅ               ｍｏｒｅ               ｃａｓｈ               ｗｈｉｌｅ               ａｗａｉｔｉｎｇ               ｔｈｅ               ｎｅｅｄ               ｆｏｒ               ｉｔ.

Ｍａｒｋｅｔａｂｌｅ               ｓｅｃｕｒｉｔｉｅｓ               ａｒｅ               ａｎ               ｅｘａｍｐｌｅ               ｏｆ               ｍａｎａｇｅｍｅｎｔ               ｏｆ               ｃａｓｈ               ｉｎ               ｗａｙｓ               ｗｈｅｒｅ               ｔｈｅ               ｃａｓｈ               ｃａｎ               ｂｅ               ｕｓｅｄ               ｔｏ               ｐｒｏｖｉｄｅ               ａｎ               ａｄｄｉｔｉｏｎａｌ               ｓｏｕｒｃｅ               ｏｆ               ｉｎｃｏｍｅ               ｗｈｉｌｅ               ｓｔｉｌｌ               ｂｅｉｎｇ               ａｖａｉｌａｂｌｅ               ｉｎ               ｒｅｌａｔｉｖｅｌｙ               ｓｈｏｒｔ-ｔｅｒｍ               ｎｏｔｉｃｅ.
               Ｂｅｓｔ               ｐｒａｃｔｉｃｅｓ               ｉｎ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｍａｎａｇｅｍｅｎｔ               ｃａｎ               ｖａｒｙ               ｂｅｔｗｅｅｎ               ｉｎｄｕｓｔｒｉｅｓ.

Ｓｏｍｅ               ｉｎｄｕｓｔｒｉｅｓ               ｒｅｌｙ               ｈｅａｖｉｌｙ               ｏｎ               ｌａｒｇｅ               ａｍｏｕｎｔｓ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ｆｕｎｄ               ｒａｐｉｄｌｙ               ｃｈａｎｇｉｎｇ               ｔｅｃｈｎｏｌｏｇｙ               ｎｅｅｄｓ;               ｈｏｗｅｖｅｒ,               ｏｔｈｅｒ               ｃｏｍｐａｎｉｅｓ               ｒｅｌｙ               ｍｏｒｅ               ｈｅａｖｉｌｙ               ｏｎ               ｌｉｎｅｓ               ｏｆ               ｃｒｅｄｉｔ               ｒａｔｈｅｒ               ｔｈａｎ               ｌａｒｇｅ               ａｍｏｕｎｔｓ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ.

Ｆｏｒ               ｉｎｓｔａｎｃｅ,               ｔｈｅ               ｍｅｄｉａ               ｉｎｄｕｓｔｒｙ               ｈａｓ               ｖａｒｙｉｎｇ               ｎｅｅｄｓ               ｆｏｒ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｎｄ               ｏｆｔｅｎ               ｒｅｌｉｅｓ               ｏｎ               ｐｒｏｊｅｃｔｓ               ｂｅｉｎｇ               ｐｒｏｐｅｒｌｙ               ｆｏｒｍｕｌａｔｅｄ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ａｃｑｕｉｒｅ               ｆｕｎｄｉｎｇ               ｆｏｒ               ｍｏｖｉｅｓ               ｏｒ               ｌａｒｇｅｒ               ｐｒｏｊｅｃｔｓ               ｉｎｃｌｕｄｉｎｇ               ｃｏｍｐｌｅｔｉｏｎ               ｂｏｎｄｓ;               ｈｏｗｅｖｅｒ,               ｓｍａｌｌｅｒ               ｐｒｏｊｅｃｔｓ               ｓｕｃｈ               ａｓ               ａｄｓ               ａｎｄ               ｃｏｍｍｅｒｃｉａｌｓ               ｍａｙ               ｂｅ               ｆｕｎｄｅｄ               ｄｉｒｅｃｔｌｙ               ｆｒｏｍ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ.

Ｗｈｅｎ               ｌａｒｇｅｒ               ｐｒｏｊｅｃｔｓ               ｒｕｎ               ｏｖｅｒ               ｂｕｄｇｅｔ,               ｔｈｅ               ｆｕｎｄｉｎｇ               ｍａｙ               ｃｏｍｅ               ｆｒｏｍ               ｔｈｅ               ｉｎｖｅｓｔｏｒｓ,               ｄｉｓｔｒｉｂｕｔｏｒｓ,               ｏｒ               ａｄｄｉｔｉｏｎａｌ               ｂａｎｋ               ｌｏａｎｓ,               ｂａｓｅｄ               ｏｎ               ｔｈｅ               ｐｒｅｄｉｃｔｅｄ               ｓｕｃｃｅｓｓ               ｏｆ               ｔｈｅ               ｐｒｏｊｅｃｔ/ｍｏｖｉｅ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ｍａｎｙ               ｍｅｄｉａ               ｃｏｍｐａｎｉｅｓ               ｒｕｎ               ａ               ｌｉｎｅ               ｏｆ               ｃｒｅｄｉｔ               ｗｉｔｈ               ｂａｎｋｓ               ｔｏ               ａｓｓｉｓｔ               ｉｎ               ｅｍｅｒｇｅｎｃｙ               ｆｕｎｄｉｎｇ               ｏｆ               ｐｒｏｊｅｃｔｓ               ｔｈａｔ               ｍａｙ               ｒｕｎ               ｏｖｅｒ               ｂｕｄｇｅｔ               ｗｉｌｌ               ｂｅ               ｐａｉｄ               ａｔ               ｔｈｅ               ｃｏｍｐｌｅｔｉｏｎ               ｏｆ               ｔｈｅ               ｐｒｏｊｅｃｔ.

Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｏｐｅｒａｔｅｓ               ｂａｓｅｄ               ｏｎ               ｓｅａｓｏｎａｌ               ｃｈａｎｇｅｓ               ａｎｄ               ｉｓ               ｒｅｌｉａｎｔ               ｏｎ               ｔｈｅ               ｃｈａｎｇｅｓ               ｉｎ               ｂｏｔｈ               ｓｕｐｐｌｉｅｒｓ               ａｎｄ               ｄｉｓｔｒｉｂｕｔｏｒｓ.

Ｗｈｉｌｅ               ｂｕｓｉｎｅｓｓ               ｍａｙ               ｆｌｕｃｔｕａｔｅ               ｉｎ               ｓｏｍｅ               ｄｉｒｅｃｔｉｏｎｓ               ｂａｓｅｄ               ｓｉｍｐｌｙ               ｏｎ               ｂｕｙｉｎｇ               ｓｅａｓｏｎｓ,               ｃｏｍｐａｎｉｅｓ               ｓｕｃｈ               ａｓ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｃａｎ               ｄｅｖｅｌｏｐ               ｆｉｎａｎｃｉａｌ               ｓｉｔｕａｔｉｏｎｓ               ｂａｓｅｄ               ｓｏｌｅｌｙ               ｏｎ               ｔｈｅ               ｒｅｌｉａｂｉｌｉｔｙ               ｏｆ               ｔｈｅｉｒ               ｓｏｕｒｃｅｓ               ｏｆ               ｒｅｖｅｎｕｅ               ａｓ               ｗｅｌｌ               ａｓ               ｔｈｅ               ｃｒｅｄｉｔ               ｉｓｓｕｅｄ               ｔｏ               ｔｈｏｓｅ               ｓｏｕｒｃｅｓ.
               Ｓｕｃｃｅｓｓｆｕｌ               ｍａｎａｇｅｍｅｎｔ               ｏｆ               ｓｕｐｐｌｉｅｒ               ｎｅｇｏｔｉａｔｉｏｎ               ｓｔｒａｔｅｇｉｅｓ               ｉｎ               ｔｅｒｍｓ               ｏｆ               ｐａｙｍｅｎｔ               ｏｆ               ｂａｌａｎｃｅｓ               ａｎｄ               ｃｏｓｔｓ               ａｒｅ               ｒｅｌｉａｎｔ               ｏｎ               ｃａｓｈ               ｒｅｑｕｉｒｅｍｅｎｔｓ               ａｎｄ               ｔｈｅ               ａｂｉｌｉｔｙ               ｆｏｒ               ｔｈｏｓｅ               ｔｏ               ｂｅ               ｍｅｅｔ               ｂｙ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｉｎ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ.

Ｉｎｖｅｎｔｏｒｙ               ｍａｎａｇｅｍｅｎｔ,               ｃｒｅｄｉｔ               ｍａｎａｇｅｍｅｎｔ,               ｃａｓｈ,               ａｎｄ               ｍａｒｋｅｔａｂｌｅ               ｓｅｃｕｒｉｔｉｅｓ               ｍａｋｅ               ｕｐ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｍｅｔｒｉｃｓ,               ｗｈｉｃｈ               ａｒｅ               ｅｓｓｅｎｔｉａｌ               ｆｏｒ               ｄｅｖｅｌｏｐｉｎｇ               ｑｕａｌｉｔｙ               ａｎｄ               ｅｆｆｅｃｔｉｖｅ               ｆｉｎａｎｃｉａｌ               ｍａｎａｇｅｍｅｎｔ               ｏｆ               ａ               ｃｏｍｐａｎｙ;               ｂｅｃａｕｓｅ               ｔｈｅｓｅ               ｍｅｔｒｉｃｓ               ｅｎａｂｌｅ               ｃａｒｅｆｕｌ               ｓｔｕｄｙ               ｏｆ               ｗｈａｔ,               ｉｓ               ｏｃｃｕｒｒｉｎｇ               ａｎｄ               ｗｈａｔ               ｍｕｓｔ               ｏｃｃｕｒ               ｔｏ               ｂｅ               ｓｕｃｃｅｓｓｆｕｌ.

Ｏｆ               ｃｏｕｒｓｅ,               ｔｈｅ               ｓｕｃｃｅｓｓ               ｏｆ               ｓｕｐｐｌｉｅｒ               ｎｅｇｏｔｉａｔｉｏｎｓ               ａｃｔｕａｌｌｙ               ｂｅｇｉｎｓ               ｗｉｔｈ               ｃａｒｅｆｕｌ               Ｉｎｖｅｎｔｏｒｙ               Ｍａｎａｇｅｍｅｎｔ               ｐｒａｃｔｉｃｅｓ.
               Ｉｎｖｅｎｔｏｒｙ               ｍａｎａｇｅｍｅｎｔ               ｉｓ               ｌｉｔｅｒａｌｌｙ               ｔｈｅ               ｍａｎａｇｅｍｅｎｔ               ｏｆ               ｉｎｖｅｎｔｏｒｙ               -               ｆｒｏｍ               ｒａｗ               ｇｏｏｄｓ               ｔｈｒｏｕｇｈ               ｆｉｎｉｓｈｅｄ               ｐｒｏｄｕｃｔ.

Ｔｈｅ               ｍａｎａｇｅｍｅｎｔ               ｏｆ               ｉｎｖｅｎｔｏｒｙ               ｃａｎ               ｂｅ               ｃｏｍｐｌｉｃａｔｅｄ               ｄｕｅ               ｔｏ               ｔｈｅ               ｓｔｏｒａｇｅ               ｏｆ               ｔｈｅ               ｇｏｏｄｓ,               ａｃｃｅｓｓ               ｏｆ               ｐｒｏｄｕｃｔ,               ａｎｄ               ｍａｉｎｔａｉｎｉｎｇ               ｌｅｖｅｌｓ               ｏｆ               ｐｒｏｄｕｃｔｉｏｎ,               ｗｈｉｃｈ               ｍａｙ               ｒｅｄｕｃｅ               ｔｈｅ               ｃｏｓｔ               ｏｆ               ｉｎｖｅｎｔｏｒｙ               ｔｏ               ｔｈｅ               ｃｏｍｐａｎｙ;               ｓｕｃｈ               ａｓ               ｉｓ               ｏｆｔｅｎ               ｄｅｖｅｌｏｐｅｄ               ｉｎ               ＪＩＴ               (Ｊｕｓｔ               ｉｎ               Ｔｉｍｅ)               ｏｐｅｒａｔｉｏｎｓ.

Ｍｏｓｔ               ｃｏｍｐａｎｉｅｓ               ｂｅｎｅｆｉｔ               ｆｒｏｍ               ｉｍｐｌｅｍｅｎｔｉｎｇ               ＪＩＴ               ｏｐｅｒａｔｉｏｎｓ               ｓｔｒａｔｅｇｉｅｓ               ｉｎｔｏ               ｔｈｅｉｒ               ｃｏｍｐａｎｙ,               ａｎｄ               ｗｈｉｌｅ               ｔｈｉｓ               ｗｉｌｌ               ｐｒｏｂａｂｌｙ               ｗｏｒｋ               ｇｒｅａｔ               ｉｎ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ,               ａｎｄ               ｓｈｏｕｌｄ               ｂｅ               ｉｎｃｌｕｄｅｄ               ｉｎ               ｔｈｅ               ｏｖｅｒａｌｌ               ｂｕｓｉｎｅｓｓ               ｐｌａｎｓ               ｆｏｒ               ｇｒｏｗｔｈ,               ｉｔ               ｗｏｕｌｄ               ｎｏｔ               ｃｕｒｒｅｎｔｌｙ               ａｄｄｒｅｓｓ               ｔｈｅ               ｉｓｓｕｅｓ               ｏｆ               ｃａｓｈ               ｍａｎａｇｅｍｅｎｔ.

Ｈｏｗｅｖｅｒ,               ｃｒｅｄｉｔ               ｍａｎａｇｅｍｅｎｔ               ｗｏｕｌｄ               ｂｅ               ｖｅｒｙ               ｂｅｎｅｆｉｃｉａｌ               ａｎｄ               ａｄｄｒｅｓｓｅｓ               ｔｈｅ               ｉｓｓｕｅｓ               ｏｆ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ               ｂｙ               ａｄｄｒｅｓｓｉｎｇ               ｔｈｅ               ｉｓｓｕｅｓ               ｏｆ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅ.
               Ｅｖａｌｕａｔｉｏｎ               Ｍｅｔｒｉｃｓ
               Ｓｕｃｃｅｓｓｆｕｌ               ｍｅｔｒｉｃｓ               ｅｎａｂｌｅ               ａ               ｆｉｒｍ               ｏｒ               ｃｏｍｐａｎｙ               ｔｏ               ｃａｒｅｆｕｌｌｙ               ｅｖａｌｕａｔｅ               ｔｈｅ               ｕｓｅ               ｏｆ               ｃａｓｈ,               ｃｒｅｄｉｔ,               ｓｈｏｒｔ-ｔｅｒｍ               ａｎｄ               ｌｏｎｇ-ｔｅｒｍ               ｆｉｎａｎｃｉｎｇ.

Ｍｅｔｈｏｄｓ               ｓｈｏｕｌｄ               ｉｎｃｌｕｄｅ               ａ               ｖａｒｉｅｔｙ               ｏｆ               ｉｎｆｏｒｍａｔｉｏｎ,               ｗｈｉｃｈ               ｗｏｕｌｄ               ｉｎｃｌｕｄｅ               ａｓｙｍｍｅｔｒｉｃ,               ｇｅｏｍｅｔｒｉｃ,               ａｎｄ               ｐｅｃｋｉｎｇ               ｏｒｄｅｒ               ｍｅｔｈｏｄｓ,               ｗｈｉｃｈ               ａｎａｌｙｚｅ               ｔｈｅ               ｉｎｆｏｒｍａｔｉｏｎ               ｆｒｏｍ               ｐｒｅｖｉｏｕｓ               ｍｏｎｔｈｓ               ａｎｄ               ｃａｎ               ｂｅ               ｕｓｅｄ               ｔｏ               ｆｏｒｅｃａｓｔ               ｕｐｃｏｍｉｎｇ               ｃｈａｎｇｅｓ               ｉｎ               ｆｕｔｕｒｅ               ｍｏｎｔｈｓ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ａ               ｐｒｉｍａｒｙ               ｍｅｔｒｉｃ               ｔｏ               ｅｖａｌｕａｔｅ               ｗｏｕｌｄ               ｂｅ               ｔｈｅ               ｉｍｐａｃｔ               ｏｎ               ｉｎｖｅｎｔｏｒｙ               ａｎｄ               ｃａｓｈ               ｂｕｄｇｅｔｉｎｇ               ｐｒａｃｔｉｃｅｓ               ｆｏｒ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ.

Ｉｆ               ｌｏｎｇ-ｔｅｒｍ               ｄｅｖｅｌｏｐｍｅｎｔ               ｉｎｃｒｅａｓｅｓ               ａｖａｉｌａｂｉｌｉｔｙ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｔｈｅ               ｃｈａｎｇｅｓ               ｓｈｏｕｌｄ               ｂｅ               ｖｉｅｗｅｄ               ｎｅａｒｌｙ               ｉｍｍｅｄｉａｔｅｌｙ;               ｈｏｗｅｖｅｒ,               ｔｈｅ               ｃｈａｎｇｅｓ               ｔｏ               ｄｅｂｔ               ｍａｎａｇｅｍｅｎｔ               ａｎｄ               ｉｎｖｅｎｔｏｒｙ               ｃｏｎｔｒｏｌ               ｍａｙ               ｔａｋｅ               ｌｏｎｇｅｒ               ｔｏ               ｅｖａｌｕａｔｅ               ｏｒ               ｔｏ               ｓｅｅ               ｌａｒｇｅ               ｃｈａｎｇｅｓ               ｉｎ.

Ｕｎｄｅｒｓｔａｎｄｉｎｇ               ｈｏｗ               ｏｔｈｅｒ               ｃｏｍｐａｎｉｅｓ               ｍａｎａｇｅ               ｔｈｅｉｒ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｏｒ               ｆｉｎａｎｃｉａｌ               ｎｅｅｄｓ               ｉｓ               ｅｓｓｅｎｔｉａｌ               ｔｏ               ｓｕｃｃｅｓｓ.
               Ｉｎｄｕｓｔｒｙ               Ｂｅｓｔ               Ｐｒａｃｔｉｃｅｓ
               Ｄｏｂｓｏｎ               Ｃｏｍｍｕｎｉｃａｔｉｏｎｓ,               ａｋａ               Ｃｅｌｌｕｌａｒ               Ｏｎｅ,               ｗａｓ               ａ               ｒｕｒａｌ               ｃｅｌｌ               ｐｈｏｎｅ               ｓｅｒｖｉｃｅ               ｐｒｏｖｉｄｅｒ               ｗｈｏ               ｗａｓ               ａｃｑｕｉｒｅｄ               ｂｙ               ＡＴ&Ｔ               ｆｏｒ               $2.8               ｂｉｌｌｉｏｎ               ｉｎ               2007,               ｄｕｅ               ｔｏ               ｔｈｅｉｒ               ｓｕｃｃｅｓｓ               ｉｎ               ｒｕｒａｌ               ｍａｒｋｅｔｓ               (Ｓｉｌｖａ,               2007).

Ｄｏｂｓｏｎ               Ｃｏｍｍｕｎｉｃａｔｉｏｎｓ               ｆａｃｅｄ               ｍａｎｙ               ｃｈａｌｌｅｎｇｅｓ               ｏｖｅｒ               ｔｈｅ               ｙｅａｒｓ               ｔｈｒｏｕｇｈ               ｔｅｃｈｎｏｌｏｇｙ               ｃｈａｎｇｅｓ,               ａｃｑｕｉｓｉｔｉｏｎｓ               ｏｆ               ｏｔｈｅｒ               ｃｏｍｐａｎｉｅｓ,               ｒｏａｍｉｎｇ               ａｇｒｅｅｍｅｎｔｓ,               ａｎｄ               ｍａｎｕｆａｃｔｕｒｅｒ               ａｇｒｅｅｍｅｎｔｓ.

Ｎｏｔ               ａｌｌ               ｃｏｍｐａｎｉｅｓ               ｗｅｒｅ               ａｂｌｅ               ｔｏ               ｓｔａｎｄ               ｕｐ               ｔｏ               ｉｎｄｕｓｔｒｙ               ｃｈａｎｇｅｓ,               ｉｎｃｌｕｄｉｎｇ               ＳｕｎＣｏｍ               Ｗｉｒｅｌｅｓｓ               Ｈｏｌｄｉｎｇｓ               Ｉｎｃ.

ａｎｄ               Ｃｅｎｔｅｎｎｉａｌ               Ｃｏｍｍｕｎｉｃａｔｉｏｎｓ               Ｃｏｒｐ.

ＳｕｎＣｏｍ               ｆａｃｅｄ               ｃｈａｌｌｅｎｇｅｓ               ｄｕｅ               ｔｏ               ｐｒｏｂｌｅｍｓ               ｗｉｔｈ               ａｃｃｏｕｎｔｓ               ｗｈｉｃｈ               ｄｉｄ               ｎｏｔ               ｐａｙ               ａｎｄ               ｗｅｒｅ               ｒｅｐｏｒｔｅｄ               ａｓ               "ａｔｔｒａｃｔｉｎｇ               ｌｏｗｅｒ               ｑｕａｌｉｔｙ               ｓｕｂｓｃｒｉｂｅｒｓ               ｄｕｅ               ｔｏ               ｌｏｗｅｒ               ｃｒｅｄｉｔ               ｓｔａｎｄａｒｄｓ",               ｗｈｅｎ               ｕｎａｂｌｅ               ｔｏ               ｃｏｌｌｅｃｔ               ｏｎ               ａｃｃｏｕｎｔｓ               ｏｕｔｓｔａｎｄｉｎｇ,               ｃｏｍｐａｎｉｅｓ               ａｒｅ               ｆａｃｅｄ               ｗｉｔｈ               ｒｅｖｅｎｕｅ               ａｎｄ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｄｅｃｒｅａｓｅｓ               (Ｍｅｙｅｒ,               2005,               ｐａｒａ.

8).

Ｃｅｎｔｅｎｎｉａｌ               ｒｅｐｏｒｔｅｄ               ｔｈａｔ               ｔｈｅｙ               ｗｅｒｅ               ａｎｓｗｅｒｉｎｇ               ｆｉｎａｎｃｉａｌ               ｐｒｏｂｌｅｍｓ               ｂｙ               "ｅｖａｌｕａｔｉｎｇ               ａ               ｒａｎｇｅ               ｏｆ               ｐｏｓｓｉｂｌｅ               ｓｔｒａｔｅｇｉｃ               ａｎｄ               ｆｉｎａｎｃｉａｌ               ａｌｔｅｒｎａｔｉｖｅｓ"               ｗｈｉｃｈ               ｗｏｕｌｄ               ａｄｄｒｅｓｓ               ｐｒｏｂｌｅｍｓ               ｗｉｔｈ               ｏｐｅｒａｔｉｏｎ               ｃｏｓｔｓ               ａｆｔｅｒ               ｒｅａｌｉｚｉｎｇ               ａ               ｃｏｎｔｉｎｕｅｄ               15%               ｄｅｃｒｅａｓｅ               ｉｎ               ｃｕｓｔｏｍｅｒ               ｇｒｏｗｔｈ               (Ｍｅｙｅｒ,               2005,               ｐａｒａ.

2).

Ｓｏｍｅ               ｏｆ               ｔｈｅ               ｃｈａｎｇｅｓ               ｉｎｃｌｕｄｅｄ               ｔｈｅ               ＴＤＭＡ               ｔｏ               ＧＳＭ               ｃｏｎｖｅｒｓｉｏｎ               ｔｈａｔ               ｗａｓ               ｔａｋｉｎｇ               ｐｌａｃｅ               ｉｎ               ｆｒｅｑｕｅｎｃｙ               ｔｏ               ｃｏｒｒｅｓｐｏｎｄ               ｗｉｔｈ               ｔｈｅ               ＦＣＣ               ｅｌｉｍｉｎａｔｉｎｇ               ｔｈｅ               ｂａｎｄ               ｔｏ               ｅｍｂｒａｃｅ               ｔｈｅ               ｎｅｗｅｒ,               ｂｅｔｔｅｒ,               ｔｅｃｈｎｏｌｏｇｉｅｓ               ｔｈａｔ               ａｒｅ               ｆｏｒｔｈｃｏｍｉｎｇ               ｔｏ               ｔｈｅ               ｉｎｄｕｓｔｒｙ.

Ｄｏｂｓｏｎ               Ｃｏｍｍｕｎｉｃａｔｉｏｎｓ               ｗａｓ               ａｂｌｅ               ｔｏ               ｏｖｅｒｃｏｍｅ               ｍｕｃｈ               ｏｆ               ｉｔｓ               ｃｏｍｐｅｔｉｔｏｒｓ'               ｄｉｓａｄｖａｎｔａｇｅｓ               ｂｙ               ｃｏｎｔｉｎｕｉｎｇ               ｔｏ               ｇｒｏｗ               ｉｎ               ｔｈｅ               ｒｕｒａｌ               ｍａｒｋｅｔｓ               ａｓ               ｗｅｌｌ               ａｓ               ａｃｑｕｉｒｉｎｇ               ｔｈｅ               ｂｒａｎｄ               ｎａｍｅ               Ｃｅｌｌｕｌａｒ               Ｏｎｅ               ｆｒｏｍ               Ａｌｌｔｅｌｌ               Ｃｏｒｐ.

(Ｍｅｙｅｒ,               2005).

Ｃｏｎｔｉｎｕｅｄ               ｇｒｏｗｔｈ               ｉｎ               ｃｕｓｔｏｍｅｒｓ,               ａｌｏｎｇ               ｗｉｔｈ               ｃｏｍｐｅｔｉｔｉｖｅ               ａｎｄ               ｐｒｏｄｕｃｔｉｖｅ               ｒｏａｍｉｎｇ               ａｇｒｅｅｍｅｎｔｓ               ｗｉｔｈ               Ｔ-Ｍｏｂｉｌｅ               ａｎｄ               Ｃｉｎｇｕｌａｒ               (ｎｏｗ               ＡＴ&Ｔ)               ｅｎａｂｌｅｄ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ｓｔａｙ               ｃｏｍｐｅｔｉｔｉｖｅ               ｂｙ               ｏｆｆｅｒｉｎｇ               ｃｈｅａｐｅｒ               ｐａｃｋａｇｅｓ               ａｎｄ               ｂｅｔｔｅｒ               ｎａｔｉｏｎｗｉｄｅ               ｃｏｖｅｒａｇｅ.
               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｃａｎ               ｕｓｅ               ｅｘａｍｐｌｅｓ               ｆｒｏｍ               ｔｈｅ               ｗｉｒｅｌｅｓｓ               ｉｎｄｕｓｔｒｙ               ｔｏ               ｅｖａｌｕａｔｅ               ｈｏｗ               ｔｈｅｙ               ｄｉｓｔｒｉｂｕｔｅ               ｔｈｅｉｒ               ｐｒｏｄｕｃｔｓ               ａｓ               ｗｅｌｌ               ａｓ               ｈｏｗ               ｔｈｅｙ               ｉｎｔｅｒａｃｔ               ｗｉｔｈ               ｔｈｅｉｒ               ｓｕｐｐｌｉｅｒｓ.

Ｉｎ               ｓｏｍｅ               ｓｉｔｕａｔｉｏｎｓ,               ｉｔ               ｉｓ               ｉｍｐｅｒａｔｉｖｅ               ｔｏ               ｄｉｖｅｒｓｉｆｙ               ｄｉｓｔｒｉｂｕｔｏｒｓ,               ｅｖｅｎ               ｍｏｒｅ               ｓｏ               ｔｈａｎ               ｓｕｐｐｌｉｅｒｓ.

Ｍａｙｏ               ｄｏｅｓ               ｎｏｔ               ｏｎｌｙ               ｓｅｌｌ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｐｒｏｄｕｃｔｓ;               ｔｈｅｒｅｆｏｒｅ,               ｔｈｅ               ｆｉｎａｎｃｉａｌ               ｄｉｆｆｉｃｕｌｔｉｅｓ               ｏｆ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｄｏ               ｎｏｔ               ａｆｆｅｃｔ               ｔｈｅｉｒ               ｃｏｍｐａｎｙ               ｉｎ               ｔｈｅ               ｓａｍｅ               ｗａｙ               ａｓ               ｔｈｅ               ｆｉｎａｎｃｉａｌ               ｄｉｆｆｉｃｕｌｔｉｅｓ               ｏｆ               Ｍａｙｏ               ｉｍｐａｃｔ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ＡＴ&Ｔ               ｔｅｎｄｓ               ｔｏ               ｂｅ               ａｇｇｒｅｓｓｉｖｅ               ｗｉｔｈ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｎｅｅｄｓ               ａｎｄ               ｄｉｓｃｒｉｍｉｎａｔｏｒｙ               ｗｉｔｈ               ｃｒｅｄｉｔ.

Ｗｈｉｌｅ               ｔｈｉｓ               ｍａｙ               ｓｅｅｍ               ｕｎａｐｐｅａｌｉｎｇ               ｔｏ               ｍａｎｙ               ｃｏｍｐａｎｉｅｓ               ｗｈｏ               ｄｅａｌ               ｗｉｔｈ               ｉｎｄｉｖｉｄｕａｌｓ,               ｉｔ               ｅｎａｂｌｅｓ               ＡＴ&Ｔ               ｔｏ               ａｃｑｕｉｒｅ               ｑｕａｌｉｔｙ               ｃｕｓｔｏｍｅｒｓ               ｗｈｏ               ａｒｅ               ｍｏｒｅ               ｌｉｋｅｌｙ               ｔｏ               ｆｕｌｆｉｌｌ               ｄｅｂｔ               ｒｅｑｕｉｒｅｍｅｎｔｓ               ａｎｄ               ｌｅｓｓ               ｌｉｋｅｌｙ               ｔｏ               ｂｅ               ｓｅｎｔ               ｔｏ               ｃｏｌｌｅｃｔｉｏｎｓ.
               Ｗｈｉｌｅ               ｎｏｔ               ａｌｌ               ｃｏｍｐａｎｉｅｓ               ｄｅａｌ               ｗｉｔｈ               ｉｎｄｉｖｉｄｕａｌｓ,               ｔｈｅｙ               ａｌｌ               ｕｓｅ               ｃｒｅｄｉｔ               ｉｎ               ｏｎｅ               ｏｒ               ｍｏｒｅ               ａｓｐｅｃｔｓ               ｏｆ               ｔｈｅ               ｃｏｍｐａｎｙ               -               ｊｕｓｔ               ａｓ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｄｏｅｓ.

Ｃａｒｅｆｕｌ               ｃｏｎｓｉｄｅｒａｔｉｏｎ               ｏｆ               ａ               ｃｏｍｐａｎｉｅｓ'               ｆｉｎａｎｃｉａｌ               ｓｔａｎｄｉｎｇ               ａｌｌｏｗｓ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｔｏ               ｅｖａｌｕａｔｅ               ｗｈｏ               ｔｈｅｙ               ｇｉｖｅ               ｃｒｅｄｉｔ               ｔｏｏ               ａｎｄ               ａｎ               ａｇｇｒｅｓｓｉｖｅ               ｃｏｌｌｅｃｔｉｏｎ               ｐｏｌｉｃｙ               ｗｏｕｌｄ               ｅｎａｂｌｅ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ａｖｏｉｄ               ｆｕｔｕｒｅ               ｉｓｓｕｅｓ               ｗｉｔｈ               ａｃｃｏｕｎｔｓ               ｒｅｃｅｉｖａｂｌｅｓ               ｎｅｇａｔｉｖｅｌｙ               ｉｍｐａｃｔｉｎｇ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ.

Ｃｒｅｄｉｔ               ｍａｎａｇｅｍｅｎｔ               ｉｓ               ｅｓｓｅｎｔｉａｌ               ｔｏ               ｔｈｅ               ｓｕｃｃｅｓｓ               ｏｆ               ａｃｃｏｕｎｔｓ               ｐａｙａｂｌｅ               ａｎｄ               ｒｅｃｅｉｖａｂｌｅ               ａｓ               ｗｅｌｌ               ａｓ               ｈｏｗ               ｗｅｌｌ               ａ               ｃｏｍｐａｎｙ               ｃａｎ               ａｃｑｕｉｒｅ               ａｄｄｉｔｉｏｎａｌ               ｆｕｎｄｓ.

Ｃｏｍｐａｎｉｅｓ               ｏｐｅｒａｔｅ               ｏｎ               ｃｒｅｄｉｔ               ｗｈｅｎ               ｓｅｌｌｉｎｇ               ａｎｄ               ｂｕｙｉｎｇ;               ｔｈｅｒｅｆｏｒｅ,               ｃａｒｅｆｕｌ               ｍａｎａｇｅｍｅｎｔ               ｏｎ               ｗｈｏ               ｒｅｃｅｉｖｅｓ               ｃｒｅｄｉｔ               ａｎｄ               ｗｈｏｍ               ｃｒｅｄｉｔ               ｉｓ               ｏｐｅｎｅｄ               ｗｉｔｈ               ｗｉｌｌ               ｄｅｔｅｒｍｉｎｅ               ｈｏｗ               ｓｕｃｃｅｓｓｆｕｌ               ａ               ｃｏｍｐａｎｙ               ｉｓ               ｉｎ               ｃｏｌｌｅｃｔｉｎｇ               ｒｅｃｅｉｖａｂｌｅｓ               ａｎｄ               ｈｏｗ               ｓｕｃｃｅｓｓｆｕｌ               ａ               ｃｏｍｐａｎｙ               ｗｉｌｌ               ｂｅ               ｉｎ               ａｃｑｕｉｒｉｎｇ               ｂｅｓｔ               ｒａｔｅｓ               ｆｏｒ               ｔｈｅｉｒ               ｏｗｎ               ｃｒｅｄｉｔ.
               Ｄｉｖｅｒｓｉｔｙ               ｔｏ               ｉｎｃｒｅａｓｅ               ｆｉｎａｎｃｉａｌ               ｓｔａｂｉｌｉｔｙ
               Ｋｒａｆｔ               ｈａｓ               ａｌｗａｙｓ               ｅｎｄｅａｖｏｒｅｄ               ｔｏ               ａｄｄ               ｑｕａｌｉｔｙ               ｆｏｏｄ               ｐｒｏｄｕｃｔｓ               ｔｏ               ｔｈｅｉｒ               ｌｉｎｅ-ｕｐ               ｔｏ               ｉｎｃｒｅａｓｅ               ｖａｌｕｅ               ｔｏ               ｓｈａｒｅｈｏｌｄｅｒｓ.

Ｈｏｗｅｖｅｒ,               ｉｎｃｒｅａｓｅｄ               ｄｉｖｅｒｓｉｔｙ               ａｌｓｏ               ｉｎｃｒｅａｓｅｄ               ｆｉｎａｎｃｉａｌ               ｉｎｓｔａｂｉｌｉｔｙ               ｄｕｅ               ｔｏ               ｉｎｃｒｅａｓｅｄ               ｃｏｓｔｓ               ｔｏ               Ｋｒａｆｔ.

Ｓｔａｒｔｅｄ               ｉｎ               1903               ａｓ               ａ               ｃｈｅｅｓｅ               ｃｏｍｐａｎｙ,               Ｋｒａｆｔ               ｂｅｃａｍｅ               ｐａｒｔ               ｏｆ               ａ               ｌａｒｇｅｒ               ｌｉｎｅ-ｕｐ               ｏｗｎｅｄ               ｂｙ               Ｐｈｉｌｉｐ               Ｍｏｒｒｉｓ               Ｃｏ.

ａｎｄ               ｉｎ               1990               Ｋｒａｆｔ               ｍｅｒｇｅｄ               ｗｉｔｈ               Ｇｅｎｅｒａｌ               Ｆｏｏｄｓ,               ｉｎ               2000               ｗｉｔｈ               Ｎａｂｉｓｃｏ,               ａｎｄ               ａｓ               ｏｆ               Ａｐｒｉｌ               2ｎｄ               ,               20007,               ｂｅｃａｍｅ               ａｎ               ｉｎｄｅｐｅｎｄｅｎｔ               ｃｏｍｐａｎｙ               ｓｅｐａｒａｔｅｄ               ｆｒｏｍ               Ａｌｔｒｉａ               (Ｐｈｉｌｉｐ               Ｍｏｒｒｉｓ)(Ａｂｏｕｔ               Ｋｒａｆｔ,               ｎ.ｄ.).

Ｗｈｉｌｅ               Ａｌｔｒｉａ               ｗａｓ               ｔｈｅ               ｐａｒｅｎｔ               ｃｏｍｐａｎｙ,               Ｋｒａｆｔ               ｃｏｕｎｔｅｒｅｄ               "ｓｌｏｗ               ｉｎｔｅｒｎａｌ               ｇｒｏｗｔｈ"               ｗｉｔｈ               ａｃｑｕｉｓｉｔｉｏｎｓ               ｔｏ               ｉｎｃｒｅａｓｅ               ｍａｒｋｅｔ               ｓｈａｒｅ               ｗｉｔｈ               ｉｎｃｒｅａｓｅｄ               ｐｒｏｄｕｃｔ               ｌｉｎｅｓ               (Ａｒｎｄｔ,               2007,               ｐａｒａ.

8).

Ｉｎ               ａｎ               ｅｆｆｏｒｔ               ｔｏ               ｉｎｃｒｅａｓｅ               ｓｈａｒｅｈｏｌｄｅｒ               ｖａｌｕｅ,               Ｋｒａｆｔ               ｄｅｔｅｒｍｉｎｅｄ               ｔｈａｔ               ｉｎｎｅｒ               ｓｔｒａｔｅｇｉｅｓ               ｗｏｕｌｄ               ｎｅｅｄ               ｔｏ               ｂｅ               ｄｅｖｅｌｏｐｅｄ               ｗｈｉｃｈ               ｗｏｕｌｄ               ｎｏｔ               ｉｎｃｌｕｄｅ               ａｃｑｕｉｓｉｔｉｏｎｓ               ａｓ               ａ               ｐｒｉｍａｒｙ               ｓｏｕｒｃｅ               ｏｆ               ｃｏｍｐａｎｙ               ｇｒｏｗｔｈ.

Ｔｈｅ               ｎｅｗ               ｐｒｏｃｅｓｓ               ｉｎｃｌｕｄｅｄ               ａ               ｃａｓｈ               ａｎａｌｙｓｉｓ               ｏｎ               ｔｈｅ               ｐｒｏｄｕｃｔｉｖｉｔｙ               ｏｆ               ｔｈｅ               ｄｉｆｆｅｒｅｎｔ               ｂｒａｎｄｅｄ               ｐｒｏｄｕｃｔｓ               ｃａｒｒｉｅｄ               ｂｙ               Ｋｒａｆｔ.
               Ｒｅｃｅｎｔｌｙ               Ｋｒａｆｔ               ｈａｓ               ａｎｎｏｕｎｃｅｄ               ｔｈｅ               ｓａｌｅ               ｏｆ               ｔｈｅｉｒ               ｃｅｒｅａｌ               ｂｒａｎｄ,               Ｐｏｓｔ,               ｔｏ               Ｒａｌｃｏｒｐ               Ｈｏｌｄｉｎｇｓ               Ｉｎｃ.

(Ｓｔａｉｎｂｕｒｎ,               2008).

Ｔｈｉｓ               ｓａｌｅ               ｉｓ               ａ               ｇｏｏｄ               ｍａｔｃｈ               ｂｅｃａｕｓｅ               Ｒａｌｃｏｒｐ               ｉｓ               ｃｕｒｒｅｎｔｌｙ               ｓｅｌｌｉｎｇ               "35               ｋｎｏｃｋｏｆｆ               ｃｅｒｅａｌｓ"               ａｎｄ               ｗｉｌｌ               ｎｏｗ               ｂｅ               ａｂｌｅ               ｔｏ               ｓｅｌｌ               ｔｈｅ               ｐｏｐｕｌａｒ               Ｐｏｓｔ               ｂｒａｎｄｓ,               ｗｈｉｃｈ               ｗｉｌｌ               ｉｎｃｒｅａｓｅ               ｍａｒｋｅｔ               ｓｈａｒｅ               ａｎｄ               ｃｏｍｐｅｔｉｔｉｖｅ               ｖａｌｕｅ               ａｇａｉｎｓｔ               ｃｏｍｐａｎｉｅｓ               ｓｕｃｈ               ａｓ               Ｇｅｎｅｒａｌ               Ｍｉｌｌｓ               ａｎｄ               Ｋｅｌｌｏｇｇ               Ｃｏ.

(Ｓｔａｉｎｂｕｒｎ,               2008,               ｐａｒａ.

2).

Ｓａｌｅ               ｏｆ               Ｐｏｓｔ               ｈａｓ               ｐｒｅｄｉｃｔｅｄ               ｖａｌｕｅ               ｏｆ               32%               ｒｅｖｅｎｕｅ               ｆｏｒ               Ｒａｌｃｏｒｐ,               ｗｈｉｃｈ               ｓｔｉｌｌ               ｅｎａｂｌｅｓ               Ｋｒａｆｔ               ｓｈａｒｅｈｏｌｄｅｒｓ               ｔｏ               ｉｎｃｒｅａｓｅ               ｖａｌｕｅ               ｂｅｃａｕｓｅ               ｉｔ               "ｗｉｌｌ               ｏｗｎ               54%               ｏｆ               ｔｈｅ               ｎｅｗ               Ｒａｌｃｏｒｐ"               (Ｓｔａｉｎｂｕｒｎ,               2008,               ｐａｒａ.

6).

Ｔｈｅｓｅ               ｃｈａｎｇｅｓ               ｅｎａｂｌｅｄ               Ｋｒａｆｔ               ｔｏ               ｒｅｓｔｒｕｃｔｕｒｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｎｄ               ａｄｄ               ｔｈｅ               Ｐｏｓｔ               ｂｒａｎｄｓ               ｔｏ               ｉｎｃｏｍｅ               ａｓ               ｔｈｅ               ｓｔｏｃｋ               ｉｎ               Ｒａｌｃｏｒｐ               ｐｒｏｄｕｃｅｓ               ｉｎｃｏｍｅ.
               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ               ｄｏｅｓ               ｎｏｔ               ｎｅｅｄ               ｔｏ               ｒｅｄｕｃｅ               ｄｉｖｅｒｓｉｔｙ               ｉｎ               ｐｒｏｄｕｃｔ               ａｎｄ               ｂｒａｎｄ               ａｖａｉｌａｂｉｌｉｔｙ;               ｒａｔｈｅｒ,               ｔｈｅｙ               ｗｏｕｌｄ               ｂｅｎｅｆｉｔ               ｆｒｏｍ               ｐｅｒｆｏｒｍｉｎｇ               ａ               ｃａｓｈ               ａｎａｌｙｓｉｓ               ｔｏ               ｄｅｔｅｒｍｉｎｅ               ｈｏｗ               ｍｏｎｅｙ               ｃａｎ               ｂｅ               ｍｏｒｅ               ｅｆｆｅｃｔｉｖｅｌｙ               ｍａｎａｇｅｄ               ｔｏ               ａｃｃｏｍｐｌｉｓｈ               ｓｕｃｃｅｓｓｆｕｌ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｍａｎａｇｅｍｅｎｔ.

Ｍａｎｙ               ｃｏｍｐａｎｉｅｓ               ｆａｉｌ               ｔｏ               ｐｒｏｐｅｒｌｙ               ｏｒｇａｎｉｚｅ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｎｄ               ｄｅｖｅｌｏｐ               ｅｆｆｅｃｔｉｖｅ               ｆｉｎａｎｃｉａｌ               ｐｌａｎｎｉｎｇ;               ｔｈｅｒｅｆｏｒｅ,               ｔｈｅｙ               ｏｆｔｅｎ               ｏｐｅｒａｔｅ               ｉｎ               ｔｈｅ               "ｒｅｄ"               ｏｒ               ａｒｅ               ｎｏｔ               ｐｒｅｐａｒｅｄ               ｆｏｒ               ｕｎｅｘｐｅｃｔｅｄ               ｃｈａｎｇｅｓ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ｃｏｍｐａｎｉｅｓ               ｗｈｏ               ｆａｉｌ               ｔｏ               ｍｅｅｔ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｒｅｑｕｉｒｅｍｅｎｔｓ               ｍａｙ               ｉｎｃｒｅａｓｅ               ｔｈｅｉｒ               ｌｉｋｅｌｉｈｏｏｄ               ｆｏｒ               ｅｍｐｌｏｙｅｅｓ               ｔｏ               ｅｎｇａｇｅ               ｉｎ               ｕｎｅｔｈｉｃａｌ               ｂｅｈａｖｉｏｒｓ,               ｏｒ               ｆｏｒ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ｂｅ               ｐｌａｃｅｄ               ｉｎ               ａ               ｓｉｔｕａｔｉｏｎ               ｗｈｅｒｅ               ｔｈｅｉｒ               ｔｒｅａｔｍｅｎｔ               ｏｆ               ｏｔｈｅｒ               ｃｏｍｐａｎｉｅｓ               ｏｒ               ｃｌｉｅｎｔｓ               ｃｏｕｌｄ               ｂｅ               ｕｎｅｔｈｉｃａｌ.
               Ｅｔｈｉｃａｌ               Ｉｍｐｌｉｃａｔｉｏｎｓ
               Ｓｔａｋｅｈｏｌｄｅｒｓ               ｈａｖｅ               ｖａｒｙｉｎｇ               ｎｅｅｄｓ               ａｎｄ               ｅｔｈｉｃａｌ               ｄｉｌｅｍｍａｓ.

Ａｎ               ｏｒｇａｎｉｚａｔｉｏｎ               ｎｅｅｄｓ               ｔｏ               ｂｅ               ａｂｌｅ               ｔｏ               ｃｒｅａｔｅ               ｓｈａｒｅｈｏｌｄｅｒ               ｖａｌｕｅ,               ｂｕｔ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ｂｅ               ｓｕｃｃｅｓｓｆｕｌ               ｉｎ               ｔｈｅ               ｆｕｔｕｒｅ;               ｔｈｅ               ｃｏｍｐａｎｙ               ｈａｓ               ｔｏ               ｂｅ               ａｂｌｅ               ｔｏ               ｃｒｅａｔｅ               ｖａｌｕｅ               ｔｏ               ａｌｌ               ｓｔａｋｅｈｏｌｄｅｒｓ.

Ｓｔａｋｅｈｏｌｄｅｒｓ               ｈａｖｅ               ｐｏｗｅｒ               ｏｆ               ａ               ｆｉｒｍ               ｉｎ               ｖａｒｙｉｎｇ               ｗａｙｓ.

Ｅｍｐｌｏｙｅｅｓ               ａｒｅ               ｓｔｒｏｎｇ               ｓｔａｋｅｈｏｌｄｅｒｓ,               ｉｆ               ｅｍｐｌｏｙｅｅｓ               ａｒｅ               ｕｎｈａｐｐｙ               ｗｉｔｈ               ａ               ｆｉｒｍ,               ｔｈｅｙ               ｃａｎ               ｂｒｉｎｇ               ｗｏｒｋ               ｔｏ               ａ               ｈａｌｔ.

Ｔｈｅ               ｇｏｖｅｒｎｍｅｎｔ               ｉｓ               ａｎｏｔｈｅｒ               ｓｔａｋｅｈｏｌｄｅｒ,               ｗｈｉｃｈ               ａ               ｃｏｍｐａｎｙ               ｍｕｓｔ               ｓｔｒｉｖｅ               ｔｏ               ｍａｉｎｔａｉｎ               ｐｅａｃｅ               ｗｉｔｈ.

Ｌａｗｓ               ｒｅｑｕｉｒｅ               ａ               ｃｌｅａｒ               ｃｏｍｍｕｎｉｃａｔｉｏｎ               ｗｉｔｈ               ｔｈｅ               ｇｏｖｅｒｎｍｅｎｔｓ               ｔｈａｔ               ｃａｎ               ｉｍｐａｃｔ               ｔｈｅ               ｂｕｓｉｎｅｓｓ               ａｔｍｏｓｐｈｅｒｅ.

Ｔｈｅｒｅ               ａｒｅ               ｏｆｔｅｎ               ｍａｎｙ               ｄｉｆｆｅｒｅｎｔ               ｓｔａｋｅｈｏｌｄｅｒｓ               -               ｓｈａｒｅｈｏｌｄｅｒｓ,               ｃｏｎｓｕｍｅｒｓ,               ｅｍｐｌｏｙｅｅｓ,               ａｎｄ               ｇｏｖｅｒｎｍｅｎｔ               -               ａｒｅ               ｔｈｅ               ｂａｓｉｃ               ｓｔａｋｅｈｏｌｄｅｒｓ               ｔｈａｔ               ｎｅａｒｌｙ               ｅｖｅｒｙ               ｂｕｓｉｎｅｓｓ               ａｎｓｗｅｒｓ               ｔｏ.
               Ｓｈａｒｅｈｏｌｄｅｒｓ               ａｎｄ               ｓｔｏｃｋｈｏｌｄｅｒｓ               ｈａｖｅ               ａ               ｒｉｇｈｔ               ｔｏ               ｉｎｃｒｅａｓｅｄ               ｖａｌｕｅ               ｉｎ               ｔｈｅｉｒ               ｓｈａｒｅ               ｏｆ               ｔｈｅ               ｃｏｍｐａｎｙ.

Ｄｅｃｒｅａｓｅｓ               ｉｎ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ｏｒ               ｉｎｃｒｅａｓｅｓ               ｉｎ               ｆｉｎａｎｃｉａｌ               ｄｅｂｔ               ｉｎｃｒｅａｓｅｓ               ｒｉｓｋｓ               ｔｏ               ｓｈａｒｅｈｏｌｄｅｒｓ               ｔｈａｔ               ｔｈｅ               ｃｏｍｐａｎｙ               ｗｉｌｌ               ｇｏ               ｂａｎｋｒｕｐｔ.

Ｉｎ               ｔｈｅ               ｃａｓｅ               ｗｉｔｈ               Ｍｉｃｒｏｓｏｆｔ               ａｎｄ               Ｙａｈｏｏ,               ｓｈａｒｅｈｏｌｄｅｒｓ               ｍａｙ               ｂｅ               ｃｕｒｒｅｎｔｌｙ               ｕｎｈａｐｐｙ               ｗｉｔｈ               Ｙａｈｏｏ               ｂｅｃａｕｓｅ               ｔｈｅ               ｉｎｔｅｒｅｓｔ               ｆｏｒ               ｐｕｒｃｈａｓｅ               ｂｙ               Ｍｉｃｒｏｓｏｆｔ               ｈａｄ               ｉｎｃｒｅａｓｅｄ               ｔｈｅ               ｖａｌｕｅ               ｏｆ               ｔｈｅｉｒ               ｓｔｏｃｋｓ,               ａｎｄ               ｒｅｃｅｎｔｌｙ               ｔｈｅｉｒ               ｓｔｏｃｋ               ｉｓ               ｄｅｃｒｅａｓｉｎｇ               ｉｎ               ｖａｌｕｅ               ａｆｔｅｒ               Ｍｉｃｒｏｓｏｆｔ               ｒｅｍｏｖｅｄ               ｔｈｅｉｒ               ｏｆｆｅｒ               (Ｐａｒａｄｉｓ,               2008).

Ｍａｎｙ               ｓｈａｒｅｈｏｌｄｅｒｓ               ｈａｄ               ｖｉｅｗｅｄ               ｔｈｅ               ｐｏｓｓｉｂｌｅ               ｐｕｒｃｈａｓｅ               ｂｙ               Ｍｉｃｒｏｓｏｆｔ               ａｓ               ａ               ｗａｙ               ｔｏ               ｉｎｃｒｅａｓｅ               ｔｈｅ               ｖａｌｕｅ               ｏｆ               Ｙａｈｏｏ,               ａｓ               ｙｅａｒｓ               ｏｆ               ｃｏｍｐｅｔｉｔｉｏｎ               ｓｅｅｍｅｄ               ｔｏ               ｂｅ               ｔａｋｉｎｇ               ａ               ｎｅｇａｔｉｖｅ               ｔｏｌｌ               ｏｎ               ｔｈｅ               ｃｏｍｐａｎｙ.
               Ｇｏｖｅｒｎｍｅｎｔｓ               ｈａｖｅ               ａ               ｒｉｇｈｔ               ｔｏ               ｍａｉｎｔａｉｎ               ｐｅａｃｅ               ｂｅｔｗｅｅｎ               ｃｏｎｓｕｍｅｒｓ               ａｎｄ               ｃｏｒｐｏｒａｔｉｏｎｓ.

Ｇｏｖｅｒｎｍｅｎｔｓ               ｒｅｇｕｌａｔｅ               ｏｒｇａｎｉｚａｔｉｏｎｓ               ｔｏ               ｍａｉｎｔａｉｎ               ｆａｉｒ               ｐｌａｙ               ｉｎ               ｍａｒｋｅｔｓ,               ａｓ               ｗｅｌｌ               ａｓ               ｍｏｎｉｔｏｒ               ｔｈｅ               ｉｎｔｅｒａｃｔｉｏｎｓ               ｗｉｔｈ               ｃｏｎｓｕｍｅｒｓ               ｔｏ               ｅｎｓｕｒｅ               ｔｈｅｙ               ａｒｅ               ａｌｓｏ               ｆａｉｒ               ａｎｄ               ｃｏｍｐｅｔｉｔｉｖｅ.

Ｏｎｅ               ｅｘａｍｐｌｅ               ｉｓ               ｔｈｅ               ａｐｐｒｏｖａｌ               ｆｏｒ               ｃｏｍｍｕｎｉｃａｔｉｏｎｓ               ｃｏｍｐａｎｉｅｓ               ｔｏ               ｍｅｒｇｅ               ｂｙ               ｔｈｅ               ＦＣＣ               ａｎｄ               ｔｈｅ               Ｄｅｐａｒｔｍｅｎｔ               ｏｆ               Ｊｕｓｔｉｃｅ.

Ｔｈｉｓ               ｗａｓ               ｔｈｅ               ｃａｓｅ               ｗｈｅｎ               ＡＴ&Ｔ               ａｃｑｕｉｒｅｄ               Ｄｏｂｓｏｎ               Ｃｏｍｍｕｎｉｃａｔｉｏｎｓ.

Ｔｈｅｙ               ｗｅｒｅ               ｒｅｑｕｉｒｅｄ               ｔｏ               ｓｕｂｍｉｔ               ｆｏｒｍｓ               ｔｏ               ｂｏｔｈ               ａｇｅｎｃｉｅｓ,               ｆｏｌｌｏｗｉｎｇ               ａ               ｒｅｖｉｅｗ               ｏｆ               ｔｈｅ               ａｃｑｕｉｓｉｔｉｏｎ,               ｂｏｔｈ               ａｇｅｎｃｉｅｓ               ｇｒａｎｔｅｄ               ａｐｐｒｏｖａｌ               ｗｉｔｈ               ｓｔｉｐｕｌａｔｉｏｎｓ.

Ｏｎｅ               ｓｔｉｐｕｌａｔｉｏｎ               ｉｎｃｌｕｄｅｄ               ｔｈｅ               ａｂｉｌｉｔｙ               ｔｏ               ｍａｉｎｔａｉｎ               ｃｏｍｐｅｔｉｔｉｏｎ               ｉｎ               ｅａｃｈ               ｍａｒｋｅｔ               ｗｈｅｒｅ               ｔｈｅ               ｃｈａｎｇｅｓ               ｗｏｕｌｄ               ｏｃｃｕｒ               -               ｅｓｓｅｎｔｉａｌ               ｔｏ               ｍａｉｎｔａｉｎ               ｆａｉｒｎｅｓｓ               ｔｏ               ｃｏｎｓｕｍｅｒｓ.
               Ｅｍｐｌｏｙｅｅｓ               ｏｆ               ｆｉｒｍｓ               ｍａｙ               ｎｏｔ               ｗａｎｔ               ｔｈｅ               ｄｙｎａｍｉｃｓ               ｏｆ               ｔｈｅ               ｆｉｒｍ               ｔｏ               ｃｈａｎｇｅ,               ｓｕｃｈ               ａｓ               ｃｈａｎｇｅｓ               ｔｏ               ｏｐｅｒａｔｉｏｎｓ               ｍａｎａｇｅｍｅｎｔ,               ｍｏｖｉｎｇ               ｔｏ               ＪＩＴ               ｓｙｓｔｅｍｓ,               ｏｒ               ｏｔｈｅｒ               ｃｏｍｐａｎｙ               ｗｉｄｅ               ｃｈａｎｇｅｓ               ｗｉｔｈｉｎ               ｔｈｅｉｒ               ｏｒｇａｎｉｚａｔｉｏｎ.

Ｓｏｍｅｔｉｍｅｓ               ｏｒｇａｎｉｚａｔｉｏｎｓ               ｉｇｎｏｒｅ               ｔｈｅ               ｎｅｅｄｓ               ｏｆ               ｅｍｐｌｏｙｅｅｓ               ａｓ               ｓｅｃｏｎｄａｒｙ               ｉｓｓｕｅｓ;               ｈｏｗｅｖｅｒ,               ｊｕｓｔ               ａｓ               ｅｍｐｌｏｙｅｅｓ               ｈａｖｅ               ａ               ｐｅｒｓｏｎａｌ               ｎｅｅｄ               ｔｏ               ｕｎｄｅｒｓｔａｎｄ               ｔｈｅｉｒ               ｖａｌｕｅ               ｗｉｔｈｉｎ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｈｅｙ               ｃａｎｎｏｔ               ｂｅ               ｓｕｃｃｅｓｓｆｕｌ               ａｓ               ｅｍｐｌｏｙｅｅｓ               ｉｆ               ｃｈａｎｇｅｓ               ａｆｆｅｃｔｉｎｇ               ｔｈｅｍ               ａｒｅ               ｃｏｍｍｕｎｉｃａｔｅｄ.

Ｆｉｎａｌｌｙ,               ｏｒｇａｎｉｚａｔｉｏｎｓ               ｈａｖｅ               ａ               ｐｅｒｓｏｎａｌ               ｎｅｅｄ               ｔｏ               ｓｕｃｃｅｓｓｆｕｌｌｙ               ｒｅｔａｉｎ               ｅｍｐｌｏｙｅｅｓ               ｄｕｒｉｎｇ               ｔｉｍｅｓ               ｏｆ               ｃｈａｎｇｅ               ｔｏ               ｐｒｅｖｅｎｔ               ｓｕｄｄｅｎ               ｌｏｓｓｅｓ               ｏｆ               ｐｒｏｄｕｃｔｉｏｎ               ｏｒ               ｍａｓｓ               ｗｉｔｈｄｒａｗａｌ               ｆｒｏｍ               ｔｈｅ               ｃｏｍｐａｎｙ.

Ｉｔ               ｉｓ               ｉｍｐｅｒａｔｉｖｅ               ｔｏ               ｈａｖｅ               ａ               ｈｉｇｈ               ｉｎｖｏｌｖｅｍｅｎｔ               ｏｆ               ｔｈｅ               ＨＲ               Ｄｅｐｔ.

ｄｕｒｉｎｇ               ｔｉｍｅｓ               ｏｆ               ｉｍｍｉｎｅｎｔ               ｃｈａｎｇｅｓ.
               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｗｉｌｌ               ｎｅｅｄ               ｔｏ               ｅｓｔａｂｌｉｓｈ               ｈｏｗ               ｔｈｅｙ               ｗｉｌｌ               ｈａｎｄｌｅ               ｅａｃｈ               ｏｆ               ｔｈｅｓｅ               ｅｔｈｉｃａｌ               ｉｓｓｕｅｓ               ｅａｒｌｙ               ｏｎ               ｉｎ               ｔｈｅ               ｐｒｏｊｅｃｔ               ｔｏ               ｐｒｅｖｅｎｔ               ｂｏｔｈ               ａｄｄｅｄ               ｅｘｐｅｎｓｅｓ               ａｓ               ｗｅｌｌ               ａｓ               ｓｅｖｅｒｅｌｙ               ｄｅｃｒｅａｓｅｄ               ｐｒｏｄｕｃｔｉｏｎ               ｌｅｖｅｌｓ.

Ｍａｉｎｔａｉｎｉｎｇ               ｓｔｒｏｎｇ               ｃｏｍｍｕｎｉｃａｔｉｏｎ               ｃｈａｎｎｅｌｓ               ｗｉｌｌ               ｅｎａｂｌｅ               ｔｈｅ               ｃｏｍｐａｎｙ               ｔｏ               ｗｏｒｋ               ｔｈｒｏｕｇｈ               ｐｒｏｂｌｅｍｓ               ｔｈａｔ               ｏｆｔｅｎ               ｏｃｃｕｒ               ｅａｒｌｙ               ｏｎ               ｄｕｒｉｎｇ               ｔｈｅｓｅ               ｔｙｐｅｓ               ｏｆ               ｐｒｏｊｅｃｔｓ.

Ｉｆ               ｓｕｃｃｅｓｓｆｕｌｌｙ               ｍａｎａｇｅｄ,               ｍａｎｙ               ｓｔａｋｅｈｏｌｄｅｒｓ               ｗｉｌｌ               ｄｅｖｅｌｏｐ               ａｎ               ｅｖｅｎ               ｓｔｒｏｎｇｅｒ               ｌｏｙａｌｔｙ               ｔｏ               ｔｈｅ               ｃｏｍｐａｎｙ               ａｓ               ｅｓｔａｂｌｉｓｈｍｅｎｔ               ｏｆ               ｇｏｏｄ               ｆａｉｔｈ               ｉｓ               ａ               ｓｔｒｏｎｇ               ｉｎｄｉｃａｔｏｒ               ｏｆ               ｈｏｗ               ｗｅｌｌ               ａ               ｂｕｓｉｎｅｓｓ               ｃａｎ               ｃｏｎｔｉｎｕｅ               ｇｒｏｗｉｎｇ               ｉｎｄｕｓｔｒｙ               ｓｔａｎｄａｒｄｓ.
               Ｃｏｎｃｌｕｓｉｏｎ
               Ｕｌｔｉｍａｔｅｌｙ,               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｈａｓ               ｒｅｌｉｅｄ               ｈｅａｖｉｌｙ               ｏｎ               ｐｏｌｉｃｉｅｓ               ｔｈａｔ               ａｄｄｒｅｓｓ               ａ               ｐｅｒｍａｎｅｎｔ               ｓｏｌｕｔｉｏｎ               ｔｏ               ｆｉｎａｎｃｉａｌ               ｃｈａｎｇｅｓ               ｉｎ               ｔｈｅ               ｃｏｍｐａｎｙ               ｎｅｅｄｓ;               ｈｏｗｅｖｅｒ,               ｉｔ               ｄｏｅｓ               ｎｏｔ               ａｄｄｒｅｓｓ               ｔｈｅ               ｃｈａｎｇｉｎｇ               ａｎｄ               ｇｒｏｗｉｎｇ               ｎｅｅｄｓ.

Ａ               ｃｏｍｐｌｅｔｅ               ｂｕｓｉｎｅｓｓ               ｐｌａｎ               ｗｉｌｌ               ｉｎｃｌｕｄｅ               ｄｅｖｅｌｏｐｍｅｎｔ               ｏｆ               ｌｏｎｇ-ｔｅｒｍ               ｓｏｌｕｔｉｏｎｓ,               ｗｈｉｃｈ               ａｄｄｒｅｓｓ               ｔｈｅ               ｇｒｏｗｉｎｇ               ｎｅｅｄｓ               ｏｆ               ｔｈｅ               ｃｏｍｐａｎｙ,               ｉｍｐｌｅｍｅｎｔｉｎｇ               ａ               ＪＩＴ               ｓｙｓｔｅｍ,               ｗｈｉｃｈ               ｆｏｃｕｓｅｓ               ｏｎ               ｐｒｅｐａｒｅｄ               ｃｈａｎｇｅｓ               ｉｎ               ｎｅｅｄｓ               ａｓ               ｔｈｅ               ｃｏｍｐａｎｙ               ｓｅｅｋｓ               ｏｕｔ               ｄｉｖｅｒｓｉｆｉｃａｔｉｏｎ               ｉｎ               ｄｉｓｔｒｉｂｕｔｉｏｎ               ｏｐｔｉｏｎｓ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ｇｒｏｗｉｎｇ               ａ               ｓｔｒｏｎｇ               ｃｒｅｄｉｔ               ｖａｌｕｅ               ｆｏｒ               ｔｈｅ               ｃｏｍｐａｎｙ               ｗｉｌｌ               ｉｎｃｒｅａｓｅ               ｖａｌｕｅ               ｔｏ               ｓｕｐｐｌｉｅｒｓ               ａｎｄ               ｅｎｃｏｕｒａｇｅ               ｅｔｈｉｃａｌ               ｂｅｈａｖｉｏｒ.
               Ａ               ｓｕｃｃｅｓｓｆｕｌ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｉｎｖｅｓｔｍｅｎｔ               Ｐｏｌｉｃｙ               ｉｓ               ｄｅｔｒｉｍｅｎｔａｌ               ｔｏ               ｔｈｅｉｒ               ｓｕｃｃｅｓｓ               -               ｗｈｉｌｅ               ｉｔ               ｓｈｏｕｌｄ               ｃｈａｎｇｅ               ｗｉｔｈ               ｔｈｅ               ｃｈａｎｇｉｎｇ               ｃｏｍｐａｎｙ,               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ｗｏｕｌｄ               ｃｕｒｒｅｎｔｌｙ               ｂｅｎｅｆｉｔ               ｆｒｏｍ               ｄｅｖｅｌｏｐｉｎｇ               ａ               Ｍｏｄｅｒａｔｅ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｐｏｌｉｃｙ               ａｎｄ               ｍｏｖｉｎｇ               ａｗａｙ               ｆｒｏｍ               ｔｈｅ               ｃｕｒｒｅｎｔ               ｒｅｓｔｒｉｃｔｅｄ               ｐｏｌｉｃｙ               ｕｎｔｉｌ               ｔｈｅｙ               ａｒｅ               ａｂｌｅ               ｔｏ               ｆｉｎｄ               ａｄｄｉｔｉｏｎａｌｌｙ               ｄｉｓｔｒｉｂｕｔｏｒｓ.

Ａｄｄｉｔｉｏｎａｌｌｙ,               ｔｈｅ               ａｇｇｒｅｓｓｉｖｅ               ａｐｐｒｏａｃｈ               ｔｏ               Ｃｕｒｒｅｎｔ               Ａｓｓｅｔ               Ｆｉｎａｎｃｉｎｇ               Ｐｏｌｉｃｉｅｓ               ｈａｓ               ｉｎｃｒｅａｓｅｄ               ｄｅｂｔ               ｔｏ               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               ａｎｄ               ｄｅｖｅｌｏｐｉｎｇ               ａ               ｍｏｒｅ               ｃｏｎｓｅｒｖａｔｉｖｅ               ａｐｐｒｏａｃｈ               ｃｏｕｌｄ               ｉｎｃｒｅａｓｅ               ａｖａｉｌａｂｉｌｉｔｙ               ｏｆ               ｗｏｒｋｉｎｇ               ｃａｐｉｔａｌ               ａｎｄ               ｒｅｄｕｃｅ               ｈｉｇｈ               ｒｉｓｋ               ｆｒｏｍ               ｕｎｅｘｐｅｃｔｅｄ               ｃｈａｎｇｅｓ               ｉｎ               ｒｅｖｅｎｕｅ.

Ｌａｓｔ               ｂｕｔ               ｎｏｔ               ｌｅａｓｔ,               ｕｓｉｎｇ               ｐｒｏｄｕｃｔｉｖｅ               ｍｅｔｒｉｃｓ               ｅｎａｂｌｅｓ               ａ               ｃｏｍｐａｎｙ               ｔｏ               ｃａｒｅｆｕｌｌｙ               ｍｏｎｉｔｏｒ               ｔｈｅ               ｃｈａｎｇｅｓ               ｔｈｅｙ               ｄｅｖｅｌｏｐ               ａｓ               ｗｅｌｌ               ａｓ               ｂｅ               ａｂｌｅ               ｔｏ               ｑｕｉｃｋｌｙ               ｒｅｓｐｏｎｄ               ｉｆ               ａｄｄｉｔｉｏｎａｌ               ｃｈａｎｇｅｓ               ｍｕｓｔ               ｏｃｃｕｒ               ｏｒ               ｉｆ               ｏｎｅ               ｃｈａｎｇｅ               ｈａｓ               ｌｅａｄ               ｔｈｅｍ               ｉｎ               ｔｈｅ               ｗｒｏｎｇ               ｄｉｒｅｃｔｉｏｎ.
               Ｒｅｆｅｒｅｎｃｅｓ:
               Ａｂｏｕｔ               Ｋｒａｆｔ,               Ｈｉｓｔｏｒｙ.

(ｎ.ｄ.).

Ｋｒａｆｔ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ               19,               2008,               ｆｒｏｍ
               ｈｔｔｐ://ｗｗｗ.ｋｒａｆｔ.ｃｏｍ/Ａｂｏｕｔ/ｈｉｓｔｏｒｙ/
               Ａｒｎｄｔ,               Ｍ.

(2/12/2007).

Ｉｔ               ｊｕｓｔ               ｇｏｔ               ｈｏｔｔｅｒ               ｉｎ               Ｋｒａｆｔ'ｓ               ｋｉｔｃｈｅｎ.

Ｂｕｓｉｎｅｓｓ               Ｗｅｅｋ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ
               19,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ,               Ｌｉｂｒａｒｙ,               ＥＢＳＣＯ               Ｈｏｓｔ.
               Ｂｒｅａｌｅｙ,               Ｒ.,               Ｍｙｅｒｓ,               Ｓ.,               ａｎｄ               Ａｌｌｅｎ,               Ｆ.

(2005).

Ｐｒｉｎｃｉｐｌｅｓ               ｏｆ               Ｃｏｒｐｏｒａｔｅ               Ｆｉｎａｎｃｅ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               24,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ,               ｅＲｅｓｏｕｒｃｅ.
               Ｃａｒｐｅｎｔｅｒ,               Ａ.

(ｎ.ｄ.).

ＭＢＡ               550               Ｒｅｓｏｕｒｃｅ               Ｏｐｔｉｍｉｚａｔｉｏｎ               Ｗｅｅｋ               1,               ＰｏｗｅｒＰｏｉｎｔ               ｐｒｅｓｅｎｔａｔｉｏｎ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               24,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ               ｒＥｓｏｕｒｃｅ.
               Ｄｏｂｓｏｎ,               ＡＴ&Ｔ               ｅｎｔｅｒ               ａｇｒｅｅｍｅｎｔ.

(04/26/1999).

ＲＣＲ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ               19,               2008,               ｆｒｏｍ
               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ               Ｌｉｂｒａｒｙ,               ＥＢＳＣＯ               Ｈｏｓｔ.
               Ｅｎｃａｒｔａ.

(2008).

Ｓｙｍｐａｔｉｃ               ＭＳＮ,               ｃａｓｈ               ｃｏｎｖｅｒｓｉｏｎ               ｃｙｃｌｅ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               24,               2008,               ｆｒｏｍ               ｈｔｔｐ://ｃａ.ｅｎｃａｒｔａ.ｍｓｎ.ｃｏｍ/ｄｉｃｔｉｏｎａｒｙ_561546524_561546524/ｎｅｘｔｐａｇｅ.ｈｔｍｌ
               Ｆｉｎａｎｃｉｎｇ               Ｓｏｌｕｔｉｏｎｓ.

(2001).

Ｎａｔｉｏｎａｌ               Ｂａｎｋ               ｏｆ               Ｃａｎａｄａ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               25,               2008,               ｆｒｏｍ               ｈｔｔｐ://ｗｗｗ.ｎｂｃ.ｃａ/ｂｎｃ/ｃｄａ/ｃｏｎｔｅｎｔ/0,1008,ｄｉｖＩｄ-2_ｌａｎｇＩｄ-1_ｎａｖＣｏｄｅ-12927_ｎａｖＣｏｄｅＥｘＴｈ-4100,00.ｈｔｍｌ
               Ｉｎｖｅｓｔｏｒｗｏｒｄｓ.ｃｏｍ.

(ｎ.ｄ.).

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               24,               2008,               ｆｒｏｍ               ｈｔｔｐ://ｗｗｗ.ｉｎｖｅｓｔｏｒｗｏｒｄｓ.ｃｏｍ/5334/ｗｏｒｋｉｎｇ_ｃａｐｉｔａｌ.ｈｔｍｌ
               Ｌａｗｒｅｎｃｅ               Ｓｐｏｒｔｓ'               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｐｏｌｉｃｙ               Ｔｅｍｐｌａｔｅ.

(ｎ.ｄ.).

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｊｕｎｅ               06,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ,               ｒＥｓｏｕｒｃｅ.
               Ｌｕｎａ,               Ｌ.

(12/15/1997).

Ｄｏｂｓｏｎ               ａｌｉｇｎｓ               ｗｉｔｈ               ＡＴ&Ｔ               ｔｏ               ｂｒｉｎｇ               ＴＤＭＡ               ｄｉｇｉｔａｌ               ｔｏ               ｉｔｓ               ｎｅｔｗｏｒｋ.

ＲＣＲ.
               ＭＢＡ/550               Ｔｈｅｍｅ               Ｗｅｅｋ               1-3               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｍｉｎｄ               Ｍａｐ               Ｗｅｅｋ               1.

(ｎ.ｄ.).

Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ,
               ｒＥｓｏｕｒｃｅ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               26,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ.
               Ｐａｒａｄｉｓ,               Ｔ.

(Ｍａｙ               5,               2008).

Ｓｔｏｃｋｓ               Ｄｏｗｎ               Ａｆｔｅｒ               Ｍｉｃｒｏｓｏｆｔ               Ｐｕｌｌｓ               Ｙａｈｏｏ               Ｂｉｄ.

Ｔｉｍｅ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ
               Ｍａｙ               7,               2008,               ｆｒｏｍ               ｈｔｔｐ://ｗｗｗ.ｔｉｍｅ.ｃｏｍ/ｔｉｍｅ/ｂｕｓｉｎｅｓｓ/ａｒｔｉｃｌｅ/0,8599,1737626,00.ｈｔｍｌ
               Ｒｅｎｓｓｅｌａｅｒ,               Ｄｒ.

Ｋｒｉｓｔｙ               Ｖａｎ.

(ｎ.ｄ.).

ＩＩ.

Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｐｏｌｉｃｙ.

Ｔｈｅ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｎｏｒｔｈ               Ａｌａｂａｍａ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｊｕｎｅ               06,               2007,               ｆｒｏｍ               ｈｔｔｐ://ｗｗｗ2.ｕｎａ.ｅｄｕ/ｋｖｒｅｎｓｓｅｌａｅｒ/ＦＩ%20393/ｗｏｒｋｉｎｇ%20ｃａｐｉｔａｌ%20ｍａｎａｇｅｍｅｎｔ.ｈｔｍ
               Ｒｏｓｓ,               Ｓ.,               Ｗｅｓｔｅｒｆｉｅｌｄ,               Ｊ.,               &               Ｊａｆｆｅ,               Ｊ.

(2005).

Ｃｏｒｐｏｒａｔｅ               Ｆｉｎａｎｃｅ,               7ｅ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ               11,               2008,
               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ,               ｅＲｅｓｏｕｒｃｅ.
               Ｓｃｈｅｉｎ,               Ｊ.

(2004).

Ｃａｓｈ               Ｆｌｏｗ,               Ｐｒｏｆｉｔｓ               ａｎｄ               ｔｈｅ               Ｃａｓｈ               Ｃｏｎｖｅｒｓｉｏｎ               Ｃｙｃｌｅ.

Ｓｐｏｋａｎｅ               Ｂｕｓｉｎｅｓｓ               Ｄｉｒｅｃｔｏｒｙ.ｃｏｍ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               24,               2008,               ｆｒｏｍ               ｈｔｔｐ://ｗｗｗ.ｓｐｏｋａｎｅｂｕｓｉｎｅｓｓｄｉｒｅｃｔｏｒｙ.ｃｏｍ/ｆｖｃＡ2.ｈｔｍｌ
               Ｓｈａｗ,               Ｊ.

(10/11/1999).

ＢａｎｋＡｍｅｒｉｃａ               ｇｅｔｓ               ｍａｎｄａｔｅ               ｆｒｏｍ               ＡＴ&Ｔ,               Ｄｏｂｓｏｎ.

Ｂａｎｋ               Ｌｏａｎ               Ｒｅｐｏｒｔ.
               Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ               19,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ               Ｌｉｂｒａｒｙ,               ＥＢＳＣＯ               Ｈｏｓｔ.
               Ｓｉｌｖａ,               Ｊ.

(11/5/2007).

ＡＴ&Ｔ               Ｍｏｂｉｌｉｔｙ/Ｄｏｂｓｏｎ,               Ａｌｌｔｅｌ               ｄｅａｌｓ               ｇｅｔ               ｇｏｖ'ｔ               ｂｌｅｓｓｉｎｇ.

ＲＣＲ               Ｗｉｒｅｌｅｓｓ
               Ｎｅｗｓ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ               19,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ               Ｌｉｂｒａｒｙ,               ＥＢＳＣＯ               Ｈｏｓｔ.
               Ｓｔａｉｎｂｕｒｎ,               Ｓ.

(1/21/2008).

Ｋｒａｆｔ               ｓｈｅｄｓ               ｃｅｒｅａｌ               ｂｉｚ.

Ｃｒａｉｎ'ｓ               Ｃｈｉｃａｇｏ               Ｂｕｓｉｎｅｓｓ.

Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ａｐｒｉｌ
               19,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ               Ｌｉｂｒａｒｙ,               ＥＢＳＣＯ               Ｈｏｓｔ.
               Ｗｏｒｋｉｎｇ               Ｃａｐｉｔａｌ               Ｍａｎａｇｅｍｅｎｔ.

(ｎ.ｄ.)               Ｒｅｔｒｉｅｖｅｄ               ｏｎ               Ｍａｙ               26ｔｈ,               2008,               ｆｒｏｍ               Ｕｎｉｖｅｒｓｉｔｙ               ｏｆ               Ｐｈｏｅｎｉｘ
               ｒＥｓｏｕｒｃｅ.

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2013년 12월 1일 일요일

About 'current assets ratio formula'|How to deal with those Financial Ratios

About 'current assets ratio formula'|How to deal with those Financial Ratios

Image of current assets ratio formula

Related blog with current assets ratio formula

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current assets ratio formula

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