CASE 13-6 BUTLER LUMBER COMPANY* Question 1 How well is Butler Lumber doing? Despite recording a tremendous growth in revenue as follows: 2009: 18.62% 2010: 33.83% 2011: 6.61% (on annualised basis) The profitability of Butler Lumber is on declining trend. | |2008 |2009 |2010 |1Q 2011 | |Gross Profit Margin |27.99% |28.61% |27.62% |27.30%
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RE CLARKSON LUMBER TO: John Doe President‚ Northrup National Bank FROM: George Dodge Loans Officer‚ Northrup National Bank Clarkson Lumber Company is owned and operated by the hardworking‚ 49-year-old Mr. Clarkson. It has low operating expenses‚ a small staff‚ and strong management. The overall impression is one of a conservative‚ efficient operation. Clarkson himself leads a frugal lifestyle with little personal debt. Clarkson Lumber is a company experiencing
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the arrest of the Silverthorne’s‚ the Department of Justice‚ along with U.S. Marshals office arrived at the Silverthorne’s company and conducted a thorough search of all property‚ to include books‚ papers and documents. In addition to the search and seizure‚ the Marshals made copies of the entire broadsheet evidence collected. This evidence found did reveal that the company did not pay its appropriate taxes. Similar to the Weeks’ case‚ these defendants claimed that the search and seizure was a violation
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Finance Case Study Report Ⅰ | Butler Lumber Company | | | 2010-3-17 | | 陈怡 1091209054 严伟洁 1091209036 姜帆 1091209052 敖翔 1091209024 Abstract In this report‚ we study the case of Butler Lumber Company and analyze the financing problem it was facing. First‚ we give a brief review of the background information of the company. Then we diagnose the business by examining its financial statistics and discover that company was seriously lacking of cash due to the
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1. Why has Butler Lumber borrowed increasing amounts despite its consistent profitability? How has Mr. Butler met the financing needs of the company during the period 1988 through 1990? (It would be helpful to develop a cash flow analysis (use vs. source) and the cash flow statement based upon the income statement and the balance sheet provided in the case for the period of 1988 to 1990.) Through the period of 1988 to 1990 Mark Butler has met the needs of financing through decreasing the amount of
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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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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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The Lumber Room The text under analysis is written by an outstanding British novelist and short story writer Hector Munro. Hector Hugh Munro was a British writer‚ whose witty stories satirized Edwardian society and culture. The author’s style of writing is satirical in a humorous way. He uses a witty tone to mimic characters in order to subtly criticize them. The criticism is done in a subtle way that is humorous. The excerpt is homogeneous. The story is narrated in the 3rd person
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The Lumber Room The text under analysis is entitled “The Lumber Room” and it is written by an outstanding British novelist and short story writer Hector Munro. Hector Hugh Munro‚ better known by the pen name Saki‚ was a British writer. In her Biography of Saki Munro’s sister writes: “One of Munro’s aunts‚ Augusta‚ was a woman of ungovernable temper‚ of fierce likes and dislikes‚ imperious‚ a moral coward‚ possessing no brains worth speaking of‚ and a primitive disposition.” Naturally the last
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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 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
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