Clarkson Lumber company Financial Analysis and forcasting 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
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Clarkson Lumber Hardwoods, Hard Times BBUS 505a Cavelero, Engstrom, Tobey & Zadah Overview • Case Summary • Problem Identification • Findings • Methodology • Metrics • Insights Case Summary • Clarkson Lumber Company [‘CLC’], is a small PNW lumber concern experiencing rapid, questionably financed growth. • Keith Clarkson [‘Clarkson’], sole owner of CLC, has maxed out ($399K of $400K) his line of credit [‘LOC’] at Suburban National. • CLC relies heavily on trade credit and short term debt
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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 sustain the expected growth in sales in the following years. The owner, Keith Clarkson, bought out his partner’s interest in the company in 1994 for $200,000. His partner, Henry Holtz, took a note for the $200,000 with an interest rate of 11% and was repayable in the semi-annual installments of $50,000 beginning
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1993 Net Working Capital Current assets Curent liabilities Working Capital A/R Inventory A/P Accrued Exp. Delta WC Financing Net retained Profit Extra Notes payable Bank Delta Cash 411 686 275 388 306 337 213 42 1994 330 895 565 458 411 432 340 45 70 1995 161 1249 1088 742 606 587 376 75 284 1996-Q1 170 1243 1073 759 583 607 364 67 17 1996-Est 0 68 60 77 330 5 9 Profitability 1993 74 2921 2,53% 60 504 12% 1994 84 3477 2,42% 68 372 18% 1995 99 4519 2,19% 77 449 17% 1996-Q1
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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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Alabama Atlantic would like to determine the optimal shipping routes for its lumber and the amount to be shipped on each route, in order to minimize the total equivalent uniform annual cost. It is my understanding that the company has three sources of wood, with annual availabilities of 15, 20, and 15 million board feet respectively. Additionally, the company has 5 markets it sells to, which have annual demands of 11, 12, 9, 10, and 8 million board feet respectively. Because the estimated supply
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The Lumber Room (by H.Munro) The text under analysis is written by an outstanding British novelist and short story writer Hector Munro. Hector Hugh Munro (December 18, 1870 – November 13, 1916), better known by the pen name Saki, was a British writer, whose witty and sometimes macabrestories satirized Edwardian society and culture. He is considered a master of the short story and is often compared to O. Henry and Dorothy Parker. His tales feature delicately drawn characters and finely judged narratives
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Ozark Furniture Company Ashford University MAT 221 “Maple rockers. 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 board feet of maple. Write an inequality that limits the possible number of maple rockers of each type that can be made, and graph the inequality in the first quadrant.” Ozark Furniture Company In this paper
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the term used for a tree that has not yet been processed into lumber. On the contrary, lumber is generally accepted as the wood that is no longer attached to the ground and is often seen as the laid down or processed wood. Secondly, timber is usually the term used for a piece of wood that still has its bark on whereas lumber is usually bark-less in nature. The latter usually undergoes a drying process and has a firm finish to it. Lumber is often prepared with accurate measurements and is almost always
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industrial treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electric utilities and telecommunications companies. The Company also provides treated residential lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other treated wood products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. The company has treating and pole
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