Lumber Essay

I. Introduction Clarkson Lumber Company has been in growth during recent years and anticipated a further increase in sales. Despite of consistent profits, the company has suffered shortage of cash and borrowed fund needed for its business growth. Question #1 Increasing amount of borrowing despite of its consistent profitability came from following reasons. First is the firm’s financial position. As sales have increased by 60% from 1993-1995, the assets that support increase of sales increased

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

Statement of firm’s position Butler Lumber Company is looking for more cash due to a fast-paced lumber market and a shortage of funding. Their regular bank, Suburban National Bank, is not willing to expand their exiting loan to an amount greater than $250,000 without securing the loan with real property. Another loan is being offered by a second bank, Northrup National Bank, for $465,000, with the understanding that the previous loan would be rolled into the second. The interest on the new loan

hult international business school | Clarkson Lumber Company | | | Adeeb Valiulla | 1/3/2011 | | Summary Experiencing rapid growth in business and generating fairly good profits, Mr. Keith Clarkson the sole owner and president of The Clarkson Lumber Company still faced a shortage of cash and found it necessary to increase his borrowings, he was therefore on a look-out to start off a new banking relationship where he could not only borrow a larger loan amount but also one that

The Lumber Industry The Lumber Industry is a very important industry. Lumber is very important for making things. There is a lot of interesting facts about the Lumber Industry. There is three main ways the Lumber Industry started. Fredrick Weyerhaeuser. was already a rich and successful businessman by the time he invested in Minnesota’s lumber industry. Fredrick and his partner risked almost all the money they had to buy a sawmill in Illinois. His sawmill was the first piece of a lumber empire that

business: Dawson Lumber Company Nature of the business: Wholesale Lumber Business Marketing Analysis: The Dawson Lumber Company was founded in the 1870s by the Dawson family to market the lumber on their land. In 1950, Dawson Lumber owned four small lumber yards in the Corn wall area, each operating as a separate company. However, in 1965, J.H. Dawson became president and amalgamated the four companies into the Dawson Lumber Company. The company had acquired seven more lumber yards north and

acres remain. The Pacific Lumber Company a logging company, poses a further threat to these Redwoods, because they own 6,000, or one fourteenth, of the remaining acreage. This does not include the the 220,000 acres of the world’s most productive timberland, which also includes old-growth redwoods . Any private company has an ethical contract to deliver profit and prevent losses to its owners and shareholders. This is the ultimate tension in this case study, because the lumber company is experiencing

The lumber industry may have been the most important industry in the world. Lumber was a very important to the people of early Minnesota, because of the harsh winters the people faced. When lumberjacks would go out to eat food they would use a type of language that most people wouldn't understand. Some of the words they used were like sweat pads which meant pancakes, and blackjack which was coffee. The lumberjacks used old but up to date tools at this time. The tools include cross cut saws,

Butler Lumber Company Case   Butler Lumber Company Case Summary of facts: In 1981 by Mark Butler and his brother-in-law Henry Stark founded the Butler Lumber Company. In 1988 Mr. Butler bought Mr. Stark’s share for $105,000 to be paid of in 1989 out of which $70,000 was raised by a loan carrying an interest rate of 11% and repayable at the rate of $7,000 over the next 10 years. Over the past five years, Butler Lumber Company has experienced rapid growth in its business. It derives its business

Lorman Lumber Company Case Study 2 Lorman Lumber Company is a publicly traded company located in rural Oregon in the town of Yamica on the Mohegan River. The Lorman Lumber Company is a producer of lumber products including plywood, wood studs and wood chips. Chemicals used in the production process include petroleum based creosote and pentachlorophenol (PCP) solutions that are applied to the wood to prevent moisture loss. The sawmill plant is somewhat outdated but is reasonably efficient and