they make, and draw a graph on paper of the inequality to aid in the writing of the paper. Problem number 46 on page 240 of Elementary and Intermediate Algebra is as follows: “The Ozark Furniture Company can obtain at most 3000 board feet of maple lumber for making its classic and modern maple rocking chairs. A classic maple rocker requires 15 board feet of maple, and a modern rocker requires 12 feet of maple. Write an inequality that limits the possible number of maple rockers of each type that
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Conflicts in Ethical Companies There's a story making the rounds about a consultant who was called into a lumber company. Profits were slipping and management couldn't figure out what was causing it. All of the other performance measures were stable or increasing. The consultant did what consultants do, talking with a large number of employees. He observed several things about this particular lumber company, including the fact that working conditions were somewhat austere and that the dominant leadership
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BUNYAN LUMBER, LLC Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale. The company was founded 70 years ago by Pete Bunyan. The current CEO is Paula Bunyan, the granddaughter of the founder. The company is currently evaluating a 7,500-acre forest it owns in Oregon. Paula has asked Steve Boles, the company’s finance officer, to evaluate the project. Paula’s concern is when the company should harvest the timber. Lumber is sold by the company for its “pond value.” Pond
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The General Environment surrounding the timber industry and Weyerhaeuser is highly reliant upon six different segments. These segments are: demographics, economics, political/legal, sociocultural, technological and global. The environment within which a company operates is directly influenced by what is going on in each segment. Weyerhaeuser must constantly analyze the surrounding environment through scanning, monitoring, forecasting and assessing, to determine the environments changes and its subsequent
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Financial Management – 514 Clarkson Lumber Case Study – 1 Clarkson Lumber, founded in 1981 as a partnership, is a rapidly growing business. The company has relatively low operating expenses and is a fairly profitable outfit. At first look, Clarkson appears to be a well-managed, growing, profitable company. When we dig a little deeper, issues relating to liquidity and financing arise and bring into question the ability for Clarkson to sustain growth. In terms of profitability, Clarkson
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Clarkson Lumber Case Analysis Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? 1. Cost of Goods Sold: Even though profits have been consistent, they have not increased sufficiently. The NPM has remained close to 2%, and COGS has remained around 75%, keeping profit margins low (See Appendix Exhibit 3). Therefore, operating expenses and COGS have increased at a quicker rate than net income. Additional funds are required to not only maintain the company’s
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To: Loan Committee, Northrup National Bank Date: September 17, 2014 Re: Clarkson Lumber Company Loan Application Overview Borrower: Keith Clarkson, sole owner and president of the Clarkson Lumber Company Purpose: To support rapid growth in business during recent years and anticipated further substantial increase in sales, allowing Mr. Clarkson to fully utilize trade discounts to improve profitability. Request / Amount: Not to exceed $750,000 Rate: Set on a floating rate basis at
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Clarkson Lumber Company 1. Clarkson Lumber Company was founded in 1981 and is owned by Keith Clarkson. The company is a retail distributor of lumber products in the growing suburb of the Pacific Northwest. Through competitive pricing and limiting operation expenses, the company has experienced consistent growth and anticipates substantial increases in sales in the coming years. Sales fluctuate to some degree with the health of new housing construction but the company’s high percentage of sales
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Case Discussion Questions: 1) Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? a) Clarkson Lumber has experienced a rapid growth in sales (see net sales below) and the company is finding it hard to find cash to sustain their level of growth (see notes payable below). The amount of working capital needed is outpacing the ability of the company to produce the funds themselves. To keep up with the increase of sales they need to borrow funds to increase
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The Clarkson Lumber case is about Mr. Clarkson seeking a loan that does not require a personal guarantee. The Northrup National Bank is in the process of investigating the Clarkson Lumber Company to whether or not to extend a line of credit of $750,000. However, Mr. Clarkson was only seeking for fewer amounts; thus, he assumed the line of credit would be an advantage to generate more profits into his company. In addition, The Clarkson Lumber Company is waiting on its approval based on its financial
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