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|Short Term Financing     |Lawrence can incur to stretching the accounts payables in order to raise     |“Stretching payables is often costly,|
|Plans                     |capital. If recurring to this practice Lawrence has to be very careful on the|even if no ill is incurred.   The     |
|                         |effects this could have over their balance sheet.   Lawrence Sports is not     |reason is that suppliers may offer   |
|                         |Gartner products largest consumer and could decide to stop supplying the 70% |discounts for prompt payments”       |
|                         |of raw material the company receives from them which would be devastating.   |(Brealey, Myers, & Allen, 2005, p.   |
|                         |Late fees could also end up having a significant impact on Lawrence’s balance|855).                                 |
|                         |sheet. On the other hand, Lawrence Sports who is Murray Leather Works’       |                                     |
|                         |largest consumer could seriously affected financially in they decide to put   |                                     |
|                         |off payments to the extent of forcing Murray to close which would even result|                                     |
|                         |more expensive for Lawrence because now their only supplier would be Gartner.|                                     |
|Marketable Securities     |Lawrence Sports can consider short term investments such as marketable       |“The most important current assets   |
|                         |securities which can pay interest and could be available and turn into cash   |are cash, marketable securities,     |
|                         |very quickly....