Clarkson Lumber Company Group 8 Connor Caruso Leah Chambers Eugene “Trey” Nolfi Trevor Landry (Rough Draft) Summary of facts: Clarkson Lumber Company is a top lumber supplier in the Pacific Northwest and was founded in 1981 as a partnership between Mr. Clarkson and his brotherinlaw‚ Henry Holtz. In 1994‚ Mr. Clarkson bought out Mr. Holtz’s share in the company for $200‚000. Sales for Clarkson Lumber Company has seen rapid growth‚ increasin
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The Wilson Company Case 2 Joy has recently acquired a new job with a manufacturing company‚ The Wilson Company. She had moved up the managerial ladder from a first line manager‚ to a middle manager position. This was a big step for Joy‚ however the magnitude of the change was bothering her. Not only did Joy step up a notch in the managerial world‚ she switched worlds from sales to manufacturing. Joy’s new job had some similarities‚ however she was more focused on the differences (which she did not
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Beacon lumber analysis Current ratio can measure the ability of the company to paid its short-term debt with their currently resources. The rule of thumb indicated that a company should have the ratio between 1.0 and 2.0. The current ratios of Beacon Lumber during November 2009 to January 2010 are 40.06886782‚ 4.384552725 and 4.551608547 respectively. The current ratios of Beacon Lumber are too high during these three months‚ which means Beacon Lumber is inefficiently using its resource. These
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Butler Lumber Company Case Butler Lumber Company Case Summary of facts: In 1981 by Mark Butler and his brother-in-law Henry Stark founded the Butler Lumber Company. In 1988 Mr. Butler bought Mr. Stark’s share for $105‚000 to be paid of in 1989 out of which $70‚000 was raised by a loan carrying an interest rate of 11% and repayable at the rate of $7‚000 over the next 10 years. Over the past five years‚ Butler Lumber Company has experienced rapid growth in its business. It derives its business
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The Butler Lumber company is facing cash difficulties due to the buyout of Henry Stark’s share and because it is operating a high growth rate. Thus‚ it is imperative to analyze the various options available to Mark Butler in order to meet the cash needs of the Butler Lumber Company. In order to support the reasoning for our recommendation‚ we constructed a ratio analysis (Appendix I; Exhibit 1). Even though the firm has realized increasing sales and decreased its operating and cash cycle‚ other
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Clarkson Lumber Company Financial Analysis 1. Background Clarkson Lumber Company is owned and operated by the hardworking‚ 49-year-old Mr. Clarkson. It has low operating expenses‚ a small staff‚ and strong management. The overall impression is one of a conservative‚ efficient operation. Clarkson himself leads a frugal lifestyle with little personal debt. The company has been in growth during recent years and anticipated a further increase in sales. Despite of consistent profits‚ the company
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Nicholas Cappucci Cost Management Systems Professor Wall Butler Lumber 1.Mark Butler has to borrow so much money to support his business because of his plans to expand his business and to consolidate his debt. Receiving the loan will allow Butler to make sure his inventory is ready for the projected sales increase in the coming year. Cash flexibility is also an issue with this company because they have so many outstanding debts‚ getting the loan will improve the cash flexibility. 2.I do
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Soft Wood Lumber and Doman Industries Soft Wood Lumber Disputes Simmered more than 20 years‚ but spilled over May 2002 Dispute from May 2002 to July 2006 Canada’s View Timber is owned by provincial government‚ which charge a ‘stumpage fee’ (charge to cut the trees down) Subsidized because it is used for many industries United States’ View Practice competitive auction‚ and claims Canadian provision unfair Soft Wood Lumber Disputes (con’t) Tentative Agreement reached in April 2006 US would
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| Corporate Finance Case Study Report Ⅰ | Butler Lumber Company | | | 2010-3-17 | | 陈怡 1091209054 严伟洁 1091209036 姜帆 1091209052 敖翔 1091209024 Abstract In this report‚ we study the case of Butler Lumber Company and analyze the financing problem it was facing. First‚ we give a brief review of the background information of the company. Then we diagnose the business by examining its financial statistics and discover that company was seriously lacking of cash
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Clarkson Lumber Company 1. Identify the key problem in the case and explain why it is the key problem. Clarkson Lumber Company’ sales have been growing quickly over the last couple of years. Growths in working capital necessities have surpassed the capacity of the company to produce funds by itself. Also‚ part of the finances was used to buy out a partner‚ further raising the pressure. The company couldn’t appreciate discounts on accounts payable and started borrowing larger funds from the bank
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