MEMORANDUM To: Mr. George Dodge Date: 1th June 1991 Subject: Business Analysis of Butler Lumber Business and Loan Recommendation We would like to make concise summaries of a prospective client, Butler Lumber Company led by Mr. Mark Butler- a sole owner and president. Butler Lumber Company was founded in 1981 as a partnership by Mark Butler and Henry Stark, located in growing suburb area of a large city in the Pacific Northwest. Company typical products include plywood, molding, and
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The issues presented in the Butler Lumber case deal with the financing of growth. The main problem is that the company needs additional financing due to rapid growth and they are trying to decide whether or not to enter into a loan contract for $465,000 with Northrop National Bank in addition to their already $247,000 loan from Suburban National Bank. However, the Suburban National Bank is also deciding if it should lend the money to Butler Lumber. Suburban anticipated sales in 1991 to be $3.6
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Fact Pattern: Butler Lumber is a retail distributor located in a growing suburb in the Pacific Northwest that sells basic wood products like plywood, moldings, and sash and door products. The company was formed in 1981 by Mark Butler in partnership with his brother-in-law, who Mark then bought out in 1988. The company has experienced significant growth over the past few years, and is expecting to continue to see sales growth in the coming year. Although the company has experienced increasing
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FNCE90013 Case Studies in Finance SUBJECT GUIDE July – August, 2015 Prepared by George Kester Department of Finance Faculty of Business and Economics Objective To develop an understanding of applied corporate finance including financial analysis and forecasting, financing sales growth, short-term versus long-term financing, capital structure policy, capital investment analysis, cost of capital, and company valuation. The course will be experiential and focus upon selected Harvard
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The following is my beginning analysis on Butler Lumber Company and reviewing its Risk, Opportunity, and financial condition on what is wrong and good about this company. I back up my hypothesis based on the following attainable data; Current Ratio = The current ratio is an excellent diagnostic tool as it measures whether or not BLC (Butler Lumber Company) has enough resources to pay its bills over the next 12 months. The current ratio is computed using the following data, Current Assets/Current
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Case #1: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would
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Butler Lumber Company Case Study 3) Butler Lumber’s profitability is very low. Their net profit margin, return on assets and return on equity are all below 0.1. This means that even with high sales, their net income will not go up very quickly and they may want to look into cutting costs. Their liquidity was good for the previous years, however this year has not started out good. The quick ratio has been in decline every year and is starting to get to a very low number. The days payable outstanding
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FINA 6092 Advanced Financial Management 2014-15 Term 1 Case questions Case #A: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated
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For Cartwright Lumber case: a. Why does Mr. Cartwright have to borrow so much money to support this profitable business? The company does not have enough funds, it has a cash flow problem, and cash from operating activities are negative in the past few years. He purchased the business with debt and is relying heavily on debt financing ever since. AR and Inventory turnover days are too long and that is not effective on an operational stand point. b. Do you agree with his estimates of the company's
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123 Upload Log In Sign up Browse DownloadStandard viewFull view OF 31 Nintendo個案分析 Ratings: 0|Views: 252|Likes: 0 Published by 蘇琇琇 See More Nintendo 個案報告 -12 組 100355040 劉恁宣 100355041 許恆碩 100355043 徐皓筠 100355045 馮千晏 100355054 蘇毓琇 051015202530351967-1982 1983-1993 1994-1999 2000-2003 2004- 消費者需求程度 技術發展程度 一、報告架構 在個案中 Nintendo 的新產品 -Wii 以較便宜、使用者易用的特色，吸引了許多當時非玩家的新顧客，為電玩市場帶來破壞性創新的效果，本組的報告先回顧在具有破壞性創新的產品出現之前，電玩市場的競爭概況，再以 Iwata 上任為轉捩點，分析 Nintendo 為
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