Clarkson Lumber Company Dishaun Aboulatifa‚ Ryan Domingo‚ Nathan Lugo‚ Erika Villaneda‚ and Heather Williams California State University‚ Los Angeles The Clarkson Lumber Company was established in 1981 which began as a partnership amongst Keith Clarkson and his brother-in-law Henry Holtz. The Lumber Company was located in the Pacific Northwest in a large city in a growing suburb. The company is known for their distribution of lumber goods in the local area‚ where they have access to railroads
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Clarkson Lumber Co. 1. Why does Mr. Clarkson have to borrow to support this profitable business? A. This company now faced the cash shortage trouble which we can see from its liquidity‚ such as current ratios‚ quick ratios and return on sales for these three years‚ following a decreasing trend. From accounts receivable statistics‚ we learn the cash inflows is decreasing since it takes longer time to collect the money from customers. And they still need to pay for purchases‚ so borrowing from
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CASE SUMMARY Date: 1/29/12 Case Title: Clarkson Lumber Company (CLC) (1) Background: CLC was founded in 1981 by Mr. Clarkson and brother-in-law Henry Holtz in the Pacific Northwest. The company has experienced rapid growth over the recent years and it is anticipated to continue. Mr. Clarkson bought out Mr. Holtz for $200‚000 to become the sole owner. This resulted in the need of more cash inflow from the bank. Even with consistent profits‚ the company has suffered a shortage of cash
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M. Abdulaeva Text Analysis The Lumber Room The text under analysis is written by the famous British novelist and short story writer Hector Munro. The story is narrated in the 3rd person. The main character is the extract is orphan Nicholas‚ who lives with his aunt and his cousins. The style of writing is satirical in a humorous way. The scene is laid in house of Nicholas’s aunt. In this day he is in disgrace‚ because he misbehaves at the breakfast. His cousins and his younger brother are to
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Case 1: Clarkson Lumber As a financial consultant to Clarkson Lumber‚ I analyzed four potential scenarios with relatively high probabilities of occurring given Clarkson Lumber’s current situation. The four scenarios analyzed are continued rapid growth of Clarkson Lumber with Suburban Bank as the creditor‚ slowed growth with Suburban Bank as the creditor‚ continued rapid growth with Northrup Bank as the creditor‚ and controlled rapid growth with Northrup bank as the creditor. Clarkson Lumber’s
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OM 671 – Supply chain environmental management “Green” Building A Brief Analysis of the Hayward Lumber Company’s Environmental Strategy 1/23/2014 HLC initially looked into FSC-certified wood when custom home-builders began to generate a demand for the material. This consumer base is generally providing a service for luxury home buyers who tend to be less price-sensitive and willing to pay the higher rates in order to claim environmental friendliness. The other portion of their
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Clarkson Lumber Company Situational Overview: Clarkson Lumber Company or the “Company” has encountered financial troubles in the midst of expanding revenues. In order to satisfy the demands of expansion and continue growing top line revenue‚ an increased amount of borrowing is necessary. This increased borrowing will be in the form of a revolving line of credit with an interest rate of 11%. The following paragraphs will examine what has led to the Company’s current illiquidity and what can be done
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Clarkson Lumber Company Solutions Questions: 1.What problems does Clarkson Lumber face? 2.Why does Mr. Clarkson have to borrow money to support this profitable business? 3.Is a line of credit of $ 750‚000 sufficient to meet the firm’s future financial needs? 4.As a banker‚ would you approve Mr. Clarkson’s loan request‚ and if so‚ what conditions would you put on the loan? 1. The Problem Defined: The Clarkson Lumber Company has been expanding rapidly for several years. Increases in working
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Clarkson Lumber Case FIN 4422-002 Spencer Ely September 22‚ 2011 Clarkson Lumber appears at first glance to be a healthy‚ successful company with increasing sales and rapid growth. Clarkson Lumber has relatively low operating cost‚ allowing them to give competitive prices‚ which results in their increasing sales. However‚ even with continual increases in sales‚ Clarkson Lumber has a constant cash flow problem that can be credited to several factors with the result of looking for additional
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Statement of the Problem At first glance‚ Clarkson Lumber appears to be a healthy company. However‚ despite rapid growth and increasing sales Clarkson Lumber finds itself searching for additional funding to compensate for a shortage in cash to fund its expanding business. Clarkson Lumber is in this situation for a number of reasons. The company’s inability to receive payments from customers in a timely manner created a severe impact in the company’s cash flows. The age of account receivables
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