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
Premium Revenue Net income Financial ratios
1. Why has Cartwright Lumber borrowed increasing amounts despite its consistent profitability? Cartwright lumber has had to borrow substantial amounts of money due to the fact that the firm is a growing company with sales rising quickly. In order for the company to sustain this growth rate‚ they will have to get additional external funding. Growth in sales nearly doubled from 2001 to 2003‚ with a percentage growth of 18% and 34% in 2002 & 2003 respectively. While sales are growing steadily
Premium Balance sheet Generally Accepted Accounting Principles Inventory
QUESTION 1 WHY HAS WILSON LUMBER BORROWED INCREASING AMOUNTS DESPITE ITS CONSISTENT PROFITABILITY? Although the company seems to be profitable‚ it has faced shortage of cash. It happened due to increase in Accounts Receivable as well as Inventories. On the other hand‚ Accounts Payable does not increase that rapidly and difficulties regarding cash collection become evident. Furthermore‚ the cash collection cycle becomes larger (59 days in year 2003‚ while more than 70 in year 2006). QUESTION 2
Premium Balance sheet Accounts receivable Asset
Jhon Hernandez Clarkson v. Orkin Exterminating Co.‚ Inc. 761 F.2d 189 (1985) Facts: Mrs. Clarkson bought a house. Orkin contracted with Mrs. Clarkson to treat the house for termite’s infestation and retreat the house in the event that a termite problem develops in the future. A few years later Mrs. Clarkson offered the house for sale. Purchasers noticed that the house was infested with termites. Mrs. Clarkson wanted Orkins to respond‚ but Orkins reported that correct treatment could not be done
Premium Tort Contract Breach of contract
Sears‚Roebuck and Co vs Wal-Mart Stores Inc. Case Summary of Issue Evaluate and contrast the financial performance of the two major retailers‚ Sears and Wal-Mart‚ including identifying differences in their respective retailing strategies. Analytical Approach A number of ratios could be calculated to compare the two retail companies but‚ given the importance of return on equity (ROE) as an indication of the creation of value‚ it was decided to focus first on this ratio through a Du
Premium Department store Discount store Retailing
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
Premium Finance Generally Accepted Accounting Principles Revenue
selection of princess consort. The prince who she will be married is called Clarkson. Initially‚ Amberly has no confidence to show love to Prince Clarkson. But during the period of selection‚ Amberly gets along with Prince Clarkson gradually‚ and there are many events happened which can consolidate the love between them. For instance‚ Prince Clarkson saved Amberly from the fire accident‚ or Amberly comforted Prince Clarkson when his parents had a quarrel. Then‚ Amberly shows her resolution to be
Premium Love English-language films Marriage
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
Premium Forestry Deforestation Wood
One of the most glaring issues from the inside looking out at Toucan Productions is their methods‚ or lack thereof‚ of social media marketing. Now more than ever‚ producing content on social media and sharing exciting‚ relevant information is incredibly important to building a customer base and a database. Granted that Toucan Productions provides mostly visual products‚ I feel that they could be doing more to show consumers what the company is capable of providing‚ no matter how big or small. In
Premium Marketing Social media Facebook
Cartwright Lumber Company I. Company Background & Situation Cartwright lumber company was located in a suburb of a large city in the Pacific Northwest; its operations were limited to the retail distribution of lumber products in the local area. In 1994‚ Cartwright Lumber Company was established as a partnership by Mark Cartwright and his brother-in-law Henry Stark. However‚ in 2001‚ Cartwright brought out Henry’s interest for $105‚000 and incorporated the company. About 55% of the total sales
Premium