Schultheis Sports Benchmarking

Topics: Finance, Corporate finance, Working capital Pages: 4 (1093 words) Published: October 22, 2013
Running head: SCHULTHEIS SPORTS BENCHMARKING1

SCHULTHEIS SPORTS BENCHMARKING
Carl Schultheis
Grantham University

SCHULTHEIS SPORTS BENCHMARKING2
SCHULTHEIS SPORTS BENCHMARKING
Schultheis Sports is a $20 million revenue company that manufactures and distributes equipment and protective gear for baseball, football, baseball and volleyball. Schultheis Sports purchases raw materials from Gartner Products and Murray Leather Works. Mayo’s Stores, the world’s leading retailer is Schultheis’s primary customer. Schultheis faced a cash deficit situation, borrowed money from the bank that hit the maximum line of credit 1.2 million (Simulation, 2008). A financial manager needs to analyze how Schultheis’s financial decisions affect its working capital as account receivable, account payable, cash conversion cycle, understand ratios, maintain cash balances and develop short-term financial plans. Schultheis needs to achieve a tradeoff maintaining good relationships between the partners and good working capital management. The ultimate goal of a company is to create value among stakeholders and enhance a competitive advantage by using policies and strategies (Simulation, 2008). The main issue with Schultheis is Mayo may not be able to make their promised payment on an account until past due and it might take for another 2 or 3 weeks perceive that they are not certain when they will be able to make payment in full. On the other hand, Schultheis cannot pay the bills due to jeopardize money shortfalls meanwhile two suppliers depend on Schultheis. Recently, Schultheis does not have cash flow management strategy. The company must maintain cash flow by dealing with payment interruption, handling funding deficit, obtaining short-term financing. There are some issues that can come from making ethical decisions and understanding stakeholder perspectives (Simulation, 2008). SCHULTHEIS SPORTS BENCHMARKING3

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References: Brealey-Myers-Allen (2005). Working Capital Management: Retrieved on April 25, 2008
University of Phoenix, Principles of Corporate Finance, Eighth Edition.
Brealey-Myers-Allen (2005). Short-Term Financial Planning: Retrieved on April 26, 2008
University of Phoenix, Principles of Corporate Finance, Eighth Edition.
Ross-Westerfield-Jaffe (2004). Short-Term Finance and Planning: Retrieved on April 26,
2008 University of Phoenix, Corporate Finance, Seventh Edition.
University of Phoenix (2008). Working Capital Management Scenario: Retrieved on April 26,
2008 University of Phoenix, Week One resource.
Whole Foods Market (2007). Investor Relations: Retrieved on April 27, 2008
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