Butler Lumber Case Study I. Statement of Financial Problem Butler Lumber Company‚ a growing profitable business has exhausted its credit limit and the key issues facing it are: 1. Need for additional funds to continue the growth 2. Need to consolidate debt 3. Need to improve cash flexibility. In this case study I will be discussing following problem: Why has Butler Lumber been profitable in the increasing volume of sales but at the same time it is experiencing cash difficulties
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Wilson Lumber Company After a rapid growth in its business during recent years‚ the Wilson Lumber Company‚ in the spring of 2006‚ anticipated a further substantial increase in sales. Despite good profits‚ the company had experienced a shortage of cash and had found it necessary to increase its borrowing from the Suburban National Bank to $399‚000 in the spring of 1996. The maximum loan that Suburban National would make to any one borrower was $400‚000 and Wilson had been able to stay within
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LEARNING FROM CORPORATE MISTAKES: THE RISE AND FALL OF IRIDIUM Sydney Finkelstein Shade H. Sanford EXECUTIVE SUMMARY In mid-1998‚ Iridium was one of the darlings of Wall Street having more than tripled in stock price in less than a year. Armed with expertise and over 1‚000 patents‚ the company seemed poised to capture first-mover advantage in providing global telephony via a network of low-Earth-orbiting satellites. Additionally‚ Iridium appeared to have identified an attractive target segment
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benefit from trade discounts. In order to examine operational performance of Clarkson Lumber Company‚ we calculated financial ratios for years 1993 to 1996 first quarter. In addition‚ to make a meaningful comparison‚ we calculated financial ratio for industry. Industry averages were calculated by taking arithmetic average of high-profit and low-profit outlets‚ then we calculated ratios. Financial ratios of Clarkson Lumber and industry averages can be seen in Exhibit 1. First of all‚ regarding current ratio
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Butler Lumber Company Background: Butler Lumber Company had been founded in 1981 in a suburb of a large city in the Pacific Northwest. The company s operations were limited to the retail distribution of lumber products. Their typical products included plywood‚ moldings‚ and sash and door products. Despite good profits Butler Lumber Company experienced a shortage in cash and found it necessary to increase its bank loans. Issues: y y Why does a Profitable company such as Butler Lumber need external
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Pre-work for Clarkson Lumber Prof. Ben J. Sopranzetti 1. Do a Porter’s five forces analysis for Clarkson Lumber. 2. Do a SWOT analysis for Clarkson Lumber. 3. Think about how each of the factors in the Porter and SWOT analyses affects the expected cash flows‚ the risk of those cash flows‚ and the timing of the cash flows. 4. Why does the firm have to borrow so much money to support this profitable business? Where is its money going? Try your hand at doing a funds flow statement. 5
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Harvard Business School 9-297-028 Rev. October 29‚ 1996 Clarkson Lumber Company After a rapid growth in its business during recent years‚ the Clarkson Lumber Company‚ in the spring of 1996‚ anticipated a further substantial increase in sales. Despite good profits‚ the company had experienced a shortage of cash and had found it necessary to increase its borrowing from the Suburban National Bank to $399‚000 in the spring of 1996. The maximum loan that Suburban National would make to any
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The Butler Lumber Company 1) Is Butler Lumber a profitable business? 2) Why does Mr. Butler have to borrow so much money to support their business? 3) Prepare pro forma income statement and balance sheet. Is Mr Buttler’s estimate loan requirement correct? What amount will he need to finance the expected sales increase? 4) As his financial advisor‚ would you support this expansion? As his banker‚ would you approve the loan and under what conditions? 1) The Butler Lumber Company has positive
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Tatiana Pavlova 2 ATM‚ IV year Text Analysis The Lumber Room (by H.Munro) The story tells about a little orphan Nicholas who was trusted to his tyrannical and dull-witted aunt. One day Nicholas was “in disgrace”‚ so he duped his Aunt into believing that he was somehow trying to get into the gooseberry garden‚ but instead had no intention of doing so but did sneak into the Lumber Room. There a tremendous picture of a hunter and a stag opened to him. Soon his aunt tried to look for the boy and
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Stylistic analysis of the text: “The lumber-room” by H.Munro From: Glazko Anastsiya FL81.2 Stylistic analysis of the text “The lumber-room” Hector Hugh Munro (December 18‚ 1870 – November 13‚ 1916)‚ better known by the pen name Saki‚ was a British writer‚ whose witty and sometimes macabre stories satirized Edwardian society and culture. He is considered a master of the short story and is often compared to O. Henry and Dorothy Parker. His tales feature delicately drawn characters and finely
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