Wilson Lumber Company After a rapid growth in its business during recent years‚ the Wilson Lumber Company‚ in the spring of 2006‚ anticipated a further substantial increase in sales. Despite good profits‚ the company had experienced a shortage of cash and had found it necessary to increase its borrowing from the Suburban National Bank to $399‚000 in the spring of 1996. The maximum loan that Suburban National would make to any one borrower was $400‚000 and Wilson had been able to stay within
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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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Q: Compare and contrast the characteristics of Nicholas and Ollie. Saki’ s classic‚ "The Lumber Room" is a short story about a boy who willing to do anything to get what he wants‚ while "Happy Birthday" written by Toni Cade Bambara is a short story about a little girl’s disappointment with a boring day that should have been a special occasion. Although the themes in this two short stories are differing but we can see that the main characters in the short story that are Nicholas and Ollie have
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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 be seen in Exhibit 1. First of all‚ regarding current ratio
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Harvard Business School 9-297-028 Rev. October 29‚ 1996 Clarkson Lumber Company After a rapid growth in its business during recent years‚ the Clarkson Lumber Company‚ in the spring of 1996‚ anticipated a further substantial increase in sales. Despite good profits‚ the company had experienced a shortage of cash and had found it necessary to increase its borrowing from the Suburban National Bank to $399‚000 in the spring of 1996. The maximum loan that Suburban National would make to any
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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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and concepts that your team should address: 1. Why has Clarkson Lumber Company borrowed increasing amounts despite its consistent profitability? In order for Clarkson to keep up with an increase in sales‚ they need to borrow additional funds to increase their purchase order sizes. 2. How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated? During the last 3 years‚ Clarkson has
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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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Mr. Clarkson faces a dilemma that the business is short of cash while experiencing remarkable growing. He is sourcing for new financing channels since current bank loan no longer meets the growing demand. 2. Financial Performance Assessment The analysis used in this report is based on the calculations shown in the Appendix 1 attached. It is apparent that there was a dramatic increase in sales during 1993-1995‚ and the trend seems to continue from 1996 1st quarter sales data. Sales rose by 19%
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LEXICAL STYLISTIC DEVICES Metaphor Genuine metaphors Trite(dead) metaphors Metonymy Metonymy Metonymy is the substitution of one word for another with which it is associated: ‘The White House said…’ (the American government) ; the press (newspapers and magazines); the cradle(infancy‚ place of origin);the grave(death); The hall applauded; The marble spoke; The kettle is boiling; I am fond of Agatha Christie; We didn’t speak because there were ears all around us; He was about a sentence away from
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