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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Case: Clarkson Lumber Company Issues The issues that Mr. Clarkson should consider when analyzing the future of his business are: • Can the business support growing at such a high rate? • Is it a wise decision to continuing borrowing on an even higher line of credit? • Is the business making wise choices in regards to whom it sells to? Decision The business cannot support the current rate of growth much longer. Mr. Clarkson has no choice but to infuse the business with outside cash
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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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Debt increases the cost of equity and debt reduces taxes in capital structure. Therefore‚ debt does impact the value of the firm. (IFT‚ 2012) In the case analysis‚ Sam McKenzie is considering opening new restaurants and has consulted the CFO‚ Sally Thornton with assistance with capital budgeting. The prosperity for the new restaurants relies heavily on the state of the economy over the next few years. The company has an outstanding bond in the amount of $25 million that is due at the end of the year
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The analysis «The Lumber Room» The text under analysis is written by an outstanding British novelist and short story writer Hector Munro. 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 judged
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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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The analysis of the text “The Lumber - Room” by H. Munro. The text under analysis is written by an outstanding British novelist and a short – story writer Hector Munro. He was born in 1870 and died in 1916.Also he is better known for his pseudonym Saki. Owing to the death of his mother and his father’s absence abroad he was brought up during his childhood‚ with his elder brother and sister by a grandmother and two aunts. It seems probable that their stern and unsympathetic methods account for
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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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Q1-1. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? Because they have faced cash shortage trouble. Their profitability has grown for 1993 ~ 1995 period‚ as we can see from their I/S (e.g. Sales and Net Income‚ etc.). However‚ as its business size grows‚ their A/R increased‚ which means that it is getting difficult to collect cash. On the other hand‚ A/P decreased for the same period‚ which means that the company paid cash for A/P‚ resulting in critical
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