Clarkson needs additional financing because of its short term debts and shortage of cash. It is anticipated that there will be an increase in sales‚ which means it will be in need of cash for its purchases. With the additional financing‚ company will be able to 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
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I. Introduction Clarkson Lumber Company has been in growth during recent years and anticipated a further increase in sales. Despite of consistent profits‚ the company has suffered shortage of cash and borrowed fund needed for its business growth. Question #1 Increasing amount of borrowing despite of its consistent profitability came from following reasons. First is the firm’s financial position. As sales have increased by 60% from 1993-1995‚ the assets that support increase of sales increased
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I. Overview and Introduction The Clarkson Lumber Company is a classic case of a small‚ private company rapidly growing and not having a sufficient cash flow to sustain operations with the increase in expected future sales. First‚ there needs to be an analysis of the events and strategies that have been implemented which affect the company’s financials. The owner‚ Keith Clarkson‚ bought out his partners “interest” in the company by issuing a note of $200‚000 at 11% interest. The owner issued
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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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The Clarkson Lumber Company Case Analysis June 30‚ 2011 beardsrus Leave a comment Go to comments (Note: In retrospect we think that perhaps Clarkson should reduce its expenses and debt first before leveraging itself further. Exhibits not included here) Written April 19‚ 2010 Finance 434 Overview Clarkson Lumber Company is a classic example of a privately held company that has experienced a rapid growth in sales and has reached a point where it is facing a shortage of cash to
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on American Idol. Later in the year 2013‚ she won Grammy’s for her hits “Tennessee Waltz” and “Natural Woman”. She once again got on American Idol this year because of her newest hit “Piece by Piece”. Kelly Clarkson now has 3 Grammy’s and other numerous industry hardware. Kelly Clarkson was born on 24th April 1982‚ in Fort Worth‚ Texas. She graduated from Burleson High School in the year 2000 (Biography.com). After graduation‚ Kelly had moved from Fort Worth‚ Texas to Los Angeles‚ California
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Jeremy Lin: A Hero Personified My hero’s name is Jeremy Lin. He is a Taiwanese born NBA player. When he was growing up nobody ever expected him to become a successful basketball player. After Jeremy Lin graduated high school he went to Harvard. Harvard is a very academic-based school and to see a Harvard graduate choose a path of basketball is astonishing. Jeremy Lin rose to stardom on February 4th‚ 2012. He had a career night‚ finishing with 25 points‚ 7 assists‚ and 5 rebounds. Jeremy Lin showed
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Clarkson Lumber Company 1. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability ? Clarkson’s business is growth with average Net Sales 24.50% from year 1993 to year 1995. The Net Sales Q1 year 1996 is achieved 23.50% of Net Sales year 1995. To achieve the target Net Sales year 1996‚ Clarkson should borrow the Loan from other Bank. If not‚ the estimation of achievement Net Sales year 1996 is 4 times of Net Sales Q1 year 1996 or decrease -6.00% of Net Sales
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Chink in the Chain Webster’s Dictionary defines success as the favorable or prosperous termination of attempts or endeavors‚ or‚ successful performance or achievement. On February 4th 2012 Jeremy Lin made his NBA debut against the New Jersey Nets. Twelve minutes into the game‚ the non-starter Guard entered the game to make his debut as a New York Knick. To everyone’s surprise Lin came off the bench cold to put up big numbers against the Nets that would both change the pace of the game and give
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I have chosen Jeremy Bailon to be the person that I will leave my legacy on. I’m good friends with Jeremy’s brother‚ Joshua Bailon‚ but I’ve never taken the time to get to know Jeremy. We were both apart of the cross country team at Gilbert Christian High School (GCHS)‚ but we had our own group of friends on the team. This is one of the reason that I chose Jeremy. We knew each other beforehand‚ but we never actually engaged in any meaningful conversation. This project will provide me with the perfect
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