BUTLER LUMBER COMPANY CASE REPORT Francis Davidson Tanguay Paula Zalba Dounia Tazimezalek Carl Helou Applied Corporate Finance Larbi Hammami McGill University‚ Montreal Tuesday‚ May 14th‚ 2013 1. Problem 1.1 Why was sales growth so robust‚ but net income growth anemic at best? 1.2 Does Mr.Butler need additional funding to fuel his growth? 1.3 Why does butler lumber have a cash shortage problem to begin with? 1.4 Could the cash flows of Butler Lumber support additional debt? 1.5 Should butler lumber
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Butler Lumber After thorough review and analysis of Butler Lumber’s financial reports‚ I believe that it is in the best interest of Northrup National Bank to not only approve the requested $465‚000 loan‚ but look to increase the loan amount. A review of the 5 C’s will show in more detail the decision to approve this loan: 1. Capacity/Cash Flow: Butler runs a lean operation that has allowed them to have success due to competitive pricing. They have met their financing needs by increasing
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Accounting Mitchells & Butlers Plc Mitchells & Butlers PLC Mitchells & Butlers PLC (M&B) is a major operator of managed pubs and restaurants in the United Kingdom. The corporation runs restaurants and pubs below the Alex‚ All Bar One‚ Browns‚ Crown Carveries‚ Ember Inns‚ Harvester‚ Innkeeper ’s Lodge‚ Metro Professionals‚ Miller & Carter‚ Nicholson ’s‚ O ’Neill ’s Premium Country Dining Group‚ Sizzling Pub Company‚ Toby Carvery‚ Village Pub & Kitchen‚ and Vintage Inns
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Butler and Foucault The ideas of Foucault can be seen as an influence on Butler in a number of ways. The most important of these is Foucault’s treatment of power and its relation to the body and sexuality as well as his identification of the body as the central target of power. As Butler is trying to prove that gender and sex differences are a social construct‚ the idea that those in power as well as society can shape our perceptions of our bodies and sexuality would be appealing to use. However
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Butler Case Analysis FNCE 4850 Mr. Butler has distinguished himself in the market by having the lowest prices available. In order to keep up with industry demand‚ Mr. Butler has to finance his exponential growth through external financing. While Mr. Butler does reinvest all of his net profit back into the business‚ it is not a substantial enough to support this growth‚ due to the small net profit margins. Mr. Butler believes that his new loan of $465‚000 is more than enough to cover his
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Field Report: Does Weston -Super- Mare fit the Butler Model? Figure 11 Weston-super-Mare is a popular seaside resort town located in the county of Somerset‚ England on the Bristol Channel coast. It is the largest settlement in the North West. Weston-super- Mare has a population of 69‚696 People living in households and 2‚062 people living in communal establishments; 71‚ 758 in total.2 Due to the development of the railway between local towns and cities it became a popular seaside
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Butler Lumber Case Study Solution Options: The Butler Lumber Company (BLC) could obtain from Suburban National Bank maximum loan of $250‚000 in which his property would be used to secure the loan. Northrop National Bank is considering BLC a line of credit (LOC) of up to $465‚000. BLC would have to sever ties with Suburban National if they were to have this LOC extended to them. | 1988 | 1989 | 1990 | 1991Q1 | EBITDA coverage (times) | 2.5 | 2.26 | 2.15 | 2.1 | Debt Equity Ratio
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Statement of firm’s position Butler Lumber Company is looking for more cash due to a fast-paced lumber market and a shortage of funding. Their regular bank‚ Suburban National Bank‚ is not willing to expand their exiting loan to an amount greater than $250‚000 without securing the loan with real property. Another loan is being offered by a second bank‚ Northrup National Bank‚ for $465‚000‚ with the understanding that the previous loan would be rolled into the second. The interest on the new loan
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Question 1 : Why would a customer database be so useful for a company such as forbes or kodak ? what would happen if these companies had not kept their customer data in database ? This very useful for company forbes such as in learn details about each if its individual readers by examining forbes`s entire reader population. By this way they can easily understand each individual who interacts with its brand. These details help forbes advertisers target their campaigns more precisely and also help
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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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