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
Words: 2831 - Pages: 12
MEMO RE CLARKSON LUMBER TO: President, Northrup National Bank FROM: George Dodge Loans Officer, Northrup National Bank Clarkson Lumber Company is owned and operated by the hardworking, 49-year-old Mr. Clarkson.With relatively low operating expenses, operated by a small number of staff and a strong management. Clarkson Lumber is a company experiencing rapid growth with an anticipation of a further increase in sales. However the company has constant cash flow problems. The financial ratios
Words: 877 - Pages: 4
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
Words: 2269 - Pages: 10
Sky News new caption Two police officers shot in Ferguson Sky News new caption Who could replace Jeremy Clarkson on Top Gear? Motoring Research CAR CRASH CLARKSON: 5m viewers, 214 countries, three Stigs: Top Gear in numbers Motoring Research BBC faces multimillion-pound bill from Jeremy Clarkson suspension The Guardian Jeremy Clarkson is 'huge talent' says Cameron Sky News new caption Gigi Hadid: Who is fashion's newest 'It' girl? PLUS-SIZED
Words: 760 - Pages: 4
contradiction, and makes them think that everything is going well and extinction is impossible. I think that the use of this language in the title shows that the author is trying to manipulate the reader by making them agree with him through humour. Mr. Clarkson is not showing the whole picture of the problem of extinction. The reader thinks that everything is going well, and people have time to change it. However the problem of extinction is serious, and people should think about it now, because in the
Words: 810 - Pages: 4
borrowing to meet daily needs from the bank so as to maintain its current expansion rate. Mr. Clarkson’s decision today is whether to expand and, if so, how to raise new funds. Answer: The loan requirement of $750,000 would be dependent on how Mr. Clarkson uses trade credit as a source of funds. If they don’t take advantage of the trade discount and sell $5.5 million and their % of sales were to remain same for the rest of the items in the balance sheet, they would have more than $298,000 increase
Words: 540 - Pages: 3
bionic arm to boy born with a missing limb Iron Man star Robert Downey Jr gives bionic arm to boy born with missing limb Sky News new caption Jeremy Clarkson 'alerted BBC bosses to fracas incident' The Guardian CAR CRASH CLARKSON: 'Clarkson threatened producer with dismissal' Sky News Who could replace Jeremy Clarkson on Top Gear? Motoring Research 5m viewers, 214 countries, three Stigs: Top Gear in numbers Motoring Research new caption The Sound of Music:
Words: 574 - Pages: 3
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
Words: 1037 - Pages: 5
Clarkson Lumber Company Problem Analysis: According to Exhibit 1, after computing the net profit margin, we can see that since 1993, the return on sales are 2%, 1.96%, 1.7%, which indicate the first problem. The cost of goods relative to the sales was high which caused the return on sales are too low comparing to the industry level, which also means the costs grew faster than the sales. Secondly, according to Exhibit 2, after computing the days sales outstanding, since 1993, they
Words: 256 - Pages: 2
UNIVERSIDAD LATINA DE PANAMÁ ASIGNATURA: INTRODUCCIÓN A E- COMMERCE INTERNACIONAL PROFESORA: MGTR AGUSTINA PIZARRO DE MENA ASIGNACIÓN No 2 Presentar en la semana 8: 30 de junio de 2015 GRUPO No. 4 INTEGRANTES: NOMBRES Y APELLIDOS CÉDULA / PASAPORTE __Hernan Hurtado 8-867-2034 __Jeny Caballero 8-881-440 __Rigoberto Bello Módulo I: Desarrollo Histórico del Comercio Internacional EVALUACIÓN I. Parte. Subraye la opción que consideres responde a cada
Words: 374 - Pages: 2
