Date: May 20, 1999 To: Elliott P. Smith From: Burak Alici, Mike Kruger Subject: Clarkson Lumber Background Despite its past record of profits, Clarkson Lumber has borrowed increasing amounts to satisfy the ambitious goals of its owner: Keith Clarkson. As shown in Exhibit 3, Clarkson is attempting to grow faster than its sustainable growth rate, and therefore must rely on external financing. This reliance is exacerbated by Mr. Clarkson’s simultaneous buyout of his former partner, Mr
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Mr. George Dodge, Clarkson Lumber Company is doing well but there is the issue of whether or not there is too high a risk in granting the request for the $750,000 line of credit. There are many supporting strong points but it also has some problems to work out. This is a company that has many good characteristics and looks promising but needs the extra money to pay off loans, inventory, and supplies. I recommend this company to receive the line of credit. Looking at the individual ratios seen in
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Prof. Pierre du jardin Mr. George Dodge, Clarkson Lumber Company is doing well but there is the issue of whether or not there is too high a risk in granting the request for the $750,000 line of credit. There are many supporting strong points but it also has some problems to work out. This is a company that has many good characteristics and looks promising but needs the extra money to pay off loans, inventory, and supplies. I recommend this company to receive the line of credit. Looking at the
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Thursday, January 19: Clarkson Lumber Company Reading: Note on Financial Analysis a. How is the company's financial performance? (Examine appropriate financial ratios.) b. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? c. 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
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Case Write-up #1 Clarkson Lumber Company Background Clarkson Lumber Company (CLC) is a successful finished wood products company with a promising future, yet needs to apply sound managerial financing policies to continue to be competitive in this market. The sole owner, Keith Clarkson, is dedicated to his profession and has a good reputation among his suppliers and customers. CLC's sales have been consistently growing over the past several years, rising 19% from 1993 to 1994, 30% from 1994
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COMM 371, Lecture 6 COMM 371, Lecture 6 Lecture 6: Financing Growth – The Clarkson Lumber Case Outline for Today (Clarkson Lumber) • Case objectives • Understand what drives the need for cash: Clarkson needs cash, but has a good record of profitability • Evaluate Clarkson’s loan requirements and ability to repay • Link the short-term financial plan to evaluating the firm’s long-term goals • Practice basic skills in financial analysis • Review facts of case • Construct statement of cash flows
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inventory and A/R, along with the fact that even though the company is having significant sales growth, it’s not been able to leverage the economies of scale by being able to reduce operating expenses or purchasing expenses (Total COGS). All of this is leading to significant needs for short term loans and the interest expense on these loans is only making the matters worse. Based on our Proforma calculations, we think that in 1996 Clarkson needs loan amount of approximately $ 1,235,000 (i.e. around
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Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc
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FIN 4414 Financial Management Course Syllabus Spring 2010 Term INSTRUCTOR: Dr. T. Craig Tapley Graham-Buffett Master Lecturer of Finance Section: Section: Room: 2109 – Monday and Wednesday, Periods 3-4 (9:35 a.m. – 11:30 a.m.) 7111 – Monday and Wednesday, Periods 5-6 (11:45 a.m. – 1:40 p.m.) 112 Matherly Hall Office Hours: Wednesday (2:00 p.m. - 3:00 p.m.) Thursday (1:00 p.m. - 2:30 p.m.) CONTACT INFORMATION: Office: Phone: Fax: E-Mail: 329 David Stuzin Hall (352) 392-6654 (352) 392-5237 ctapley@ufl
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empresas en nuestro país tomando en cuenta los incentivos fiscales que existen en algunos campos de la actividad económica con fines de obtener o atraer la inversión tanto nacional como extranjera. . OBJETIVOS GENERALES DE LA ASIGNATURA Clarkson Lumber Company - Objetivos Psicosociales
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