Harvard Business School 9-297-028 Rev. October 29, 1996 Clarkson Lumber Company After a rapid growth in its business during recent years, the Clarkson Lumber Company, in the spring of 1996, anticipated a further substantial increase in sales. Despite good profits, the company had experienced a shortage of cash and had found it necessary to increase its borrowing from the Suburban National Bank to $399,000 in the spring of 1996. The maximum loan that Suburban National would make to any one borrower was $400,000 and Clarkson had been able to stay within this limit only by relying very heavily on trade credit. In addition, Suburban was now asking that Mr. Clarkson guarantee the loan personally. Keith Clarkson, sole owner and …show more content…
Clarkson does in the organization.” Other employees numbered 15 in early 1996, 8 of whom worked in the yard and drove trucks, and 7 of whom assisted in the office and in sales. As part of its customary investigation of prospective borrowers, the Northrup National Bank sent inquiries concerning Mr. Clarkson to a number of firms that had business dealings with him. The manager of one of his large suppliers, the Barker Company, wrote in answer: The conservative operation of his business appeals to us. He has not wasted his money in disproportionate plant investment. His operating expenses are as low as they could possibly be. He has personal control over every feature of his business, and he possesses sound judgment and a willingness to work harder than anyone I have ever known. This, with a good personality, gives him a good turnover; and from my personal experience in watching him work, I know that he keeps close check on his own credits. All the other trade letters received by the bank bore out this opinion. In addition to owning the lumber business, which was his major source of income, Mr. Clarkson held jointly with his wife, an equity in their home. The house had cost $72,000 to build in 1979 and was mortgaged for $38,000. He also held a $70,000 life insurance policy, payable to Mrs. Clarkson. Mrs. Clarkson owned independently a half interest in a house worth about $85,000. Otherwise, they had no sizable personal investments. The
In the 1800s the lumber industry was very big thing. A man named Frederick Weyerhaeuser and one of his business partners started investing money in the lumber industry. He started by buying up a lot of timberland in Wisconsin to harvest. Once all of the white pine in Wisconsin was gone, he moved his business to Minnesota, and the industry boomed!
A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month.
The marriage between the two parties involved (Richard S. Dougall and Myrna R. Dougall) was dissolved in 2008 with the dissolution decree ordering Richard to pay Myrna $750 per month in spousal maintenance. Each of the two parties was also awarded one half interest in two parcels of property. Richard was ordered by the court to obtain appraisals and pay a fair share of the equity (as designated by the court’s property division assessment) to Myrna. In 2011, the court entered two judgments against Richard for failing to comply with obligations set down in the court order. A $5,000 judgment represented Myrna’s interest in one of the properties. The second judgment for $4,745 represented spousal maintenance arrearages. The court also reduced Richard’s spousal maintenance obligation to $500 per month effective August 2011.
her estate. If they ever came to harm and died, he would be a very rich young
R500 000 to build on in 2009 and was mortgaged for R270 000. He also held a
“Timber!” yelled a worker as he cut down yet another tree. Everyday hundreds of workers went into the woods and cut down hundreds of trees before shipping them off to sorting yards and mills. Some of the first explorers and fur traders to come to the Pacific Northwest had noticed the extremely large amounts of timber found in the region, and the lumber industry launched when the California Gold Rush created a demand for Northwest wood products. Soon after that, eight out of every ten dollars invested in manufacturing Washington’s territory went to the timber industry between 1860 and 1880. As a result of railroads, increases in mining, and a need for jobs, the lumber industry became very important to the Pacific Northwest.
new $8 million mortgage at a 6.5% interest rate had been arranged. The term was 10 years with
Although sales and profits have increased each year by an average of 5%, the owners are looking to move forward by delivering to regional areas in NSW.
Facts: Velma W. Alderman was married to Marion F. Alderman who filed a joint federal income tax return being a calendar and actual basis taxpayers in 1963. Marion F. Alderman died in October of 1968. Aldermans operated a sole proprietorship lumber-trucking business until February 13, 1963 when the Aldermans transferred all of the proprietorship’s assets and debts to Alderman Trucking Co., Inc. a newly formed corporation, in exchange for 99 of the 100 outstanding shares of the corporation’s no-par common stock and the assumption by the corporation of all of the liabilities pertaining to the sole proprietorship. The remaining share was issued to their bookkeeper. The Aldermans transferred accounts payable of $24,420.14, notes payable of 47,591.65 secured by the transferred trucks and trailers to Alderman Trucing Co., Inc, and finally depreciable trucks and trailers with a basis of $62,782.20. On Februaruy 13,1963 the day of the transfer, the liabilities of the business assumed by the Alderman Corp. exceeded the adjusted basis of the assets transferred to it by $9,229.59. The requirements of section 368(c) were satisfied on the transfer of the assets of the sole proprietorship to the Alderman Corp. because the Aldermans owned 99 percent of all the corporation 's stock after the transfer. The Aldermans executed a personal promissory note payable to the corporation with a face value of $10,229.59, creating a capital stock account of $1,000.
(2) Does Ms. Lam deal with the temp firm in her work for Woodhull and, if she does, in what
Arbor Commercial Mortgage, LLC (“Arbor”), national direct commercial real estate lender, announced in November that it funded six loans totaling nearly $30 million. Under the Fannie Mae DUS Small Loan, Freddie Mac Small Balance Loan, and FHA 223(f) programs, the mortgage company was able to secure the funding across multiple cities in Michigan -- with Vice President Mike Jehle of Arbor’s Oklahoma City office originating the loans.
-Secured Lending ($5000) plus 3% interest, pay monthly for 2 years with $35 late fee.
rates, were extended to American households with modest incomes” (p. 41). Morin and Maux (2011) also discuss Lehman’s involvement in that particular market as well as how Lehman caused erosion in that market at the same time: The bank is accused of having sold Collateralized Debt Obligations (CDOs) to its clients and taking short positions that effectively eroded the value of these
Thanks to company’s savvy business strategy, both sales and earnings have increased rapidly for the last several years.
Mid 1980s - Texas real estate and land prices crash, determined the default of many borrowers with