Butler Lumber Case - 952 Words

BUTLER LUMBER CASE REPORT The Butler Lumber company is facing cash difficulties due to the buyout of Henry Stark’s share and because it is operating a high growth rate. Thus, it is imperative to analyze the various options available to Mark Butler in order to meet the cash needs of the Butler Lumber Company. In order to support the reasoning for our recommendation, we constructed a ratio analysis (Appendix I; Exhibit 1). Even though the firm has realized increasing sales and decreased its operating and cash cycle, other factors were found to have contributed to the shortage of funds. From the analysis, we were able to conclude that the main reasons for the firm’s insufficient funds were due to its slower collection of accounts†¦show more content†¦In addition to the requirements stated above, Butler will have to put up collateral to obtain the loan. We are not worried of his capability to do so because he can put up his house (assuming he convince his wife) at a market value of $110. As well, he can put up his life insurance which is worth $70. In order to maintain the sustainable growth rate Butler must adopt more conservative policies. For example, more conservative marketing, restrict credit terms to clients, and reduce the amount of employees. Lastly there are few restrictions to the recommendation provided. To begin, it would hinder the potential growth of the firm and it would not be sustainable in the future years because the firm will lack the ability to factor accounts receivables once they are completely depleted. On the contrary, the benefits largely outweigh the cons. Firstly Butler will foster greater relationships with his suppliers as he pays them within the discount period. Furthermore, the new loan comes with a number of covenants that would considerably affect the growth of the company such as limits on investments in fixed assets and net working capital. Finally, Butler would not need to sever its loan agreement with Suburban national Bank and break this long term relationship. Thus, for the reasons mentioned in this report, the decision to factor accounts receivables and keep the Suburban loan isShow MoreRelatedButler Lumber Case1404 Words   |  6 PagesButler Lumber Company Case â€Æ' 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 businessRead MoreCase Study Butler Lumber3374 Words   |  14 PagesCase Study: Capital Budgeting Butler Lumber Company Abstract Butler Lumber Company, a lumber retailer with a rapid growth rate, is faced with the problem of cash flow shortage. In order to support this profitable business, BLC needs a great amount of cash. The loan of $250,000 from Suburban National and a line of credit of up to $465,000 from Northrop National Bank are the two choices provided. After a brief review of the operation and financial conditions of BLC, we first make analysis ofRead MoreButler Lumber Case Analysis1807 Words   |  8 PagesButler Lumber Case Analysis Question 1 Butler Lumber, a retailer of lumber products in the Pacific Northwest area, experienced a time of growth in the spring of 1991 (Harvard College, 2002, p.1). The company looked to take out a loan to grow business operations. The maximum loan offer from Suburban National Bank was $250,000 (Harvard College, 2002, p.1). This loan also required a pledge of property from company owner, Mr. Butler, to secure it. However, Northrop Bank would offer a loanRead MoreButler Lumber Company Case Study1644 Words   |  7 PagesButler Lumber Company Case Study Hoffmeister M-W 4:30 – 5:45 Group #3 Sam Rosenbaum Joel Valenti Meg Lee Stephanie Grob Butler Lumber Company Summary of Facts. Butler Lumber Company is a Pacific Northwest based lumber distributor that sells plywood, moldings, and sash and door products.   The sole owner of Butler Lumber is Mark Butler, accompanied by one administrative assistant and ten employees who focus on repairs and labor intensive work.   Because of Butler Lumber’s competitive pricingRead MoreButler Lumber Company (Case Study)1788 Words   |  8 PagesBUTLER LUMBER COMPANY CASE REPORT Francis Davidson Tanguay Paula Zalba Dounia Tazimezalek Carl Helou Applied Corporate Finance Larbi Hammami McGill University, Montreal Tuesday, May 14th, 2013 1. Problem 1.1 Why was sales growth so robust, but net income growth anemic at best? 1.2 Does Mr.Butler need additional funding to fuel his growth? 1.3 Why does butler lumber have a cash shortage problem to begin with? 1.4 Could the cash flows of Butler Lumber support additional debt? 1.5 Should butler lumberRead MoreButler Lumber Case Study Analysis Essay1444 Words   |  6 PagesSubject: Butler Lumber Company Problem: Whether Mr. Mark Butler should go ahead with financing from Northrop National Bank or should stay with Suburban National Bank. Options: 1) Enter into a loan agreement with Northrop National Bank for USD 465,000 (Assumption: The condition to sever the relationship with Suburban National Bank applies to Short Term Loan only) Read MoreCase 13-6 Butler Lumber Company695 Words   |  3 PagesCASE 13-6 BUTLER LUMBER COMPANY* Question 1 How well is Butler Lumber doing? Despite recording a tremendous growth in revenue as follows: 2009: 18.62% 2010: 33.83% 2011: 6.61% (on annualised basis) The profitability of Butler Lumber is on declining trend. | |2008 |2009 |2010 |1Q 2011 | |Gross Profit Margin |27.99% |28.61% |27.62% |27.30%Read MoreButler Lumber Company Case Study Report6120 Words   |  25 Pages| Corporate Finance Case Study Report â…   | Butler Lumber Company | | | 2010-3-17 | | 陈æ€ ¡ 1091209054 ä ¸ ¥Ã¤ ¼Å¸Ã¦ ´  1091209036 Ã¥ §Å"Ã¥ ¸â€  1091209052 æ•â€"ç ¿â€ 1091209024 Abstract In this report, we study the case of Butler Lumber Company and analyze the financing problem it was facing. First, we give a brief review of the background information of the company. Then we diagnose the business by examining its financial statistics and discover that company was seriously lacking of cashRead MoreButler Lumber Case Discussion Fathuddin Hamid Academia1338 Words   |  6 Pages4/1/2015 Butler  Lumber  Case  Discussion  |  Fathuddin  Hamid  Ã‚ ­Ã‚  Academia.edu  Search... Log In Sign Up Butler Lumber Case Discussion    1)   Is Butler Lumber Case just a bank lending / finance case? Butler Lumber Case is not just a bank lending / finance case. Though this case requires the financial analysis of the company, we should also consider other factors such as the establishing the long-term relationship between the bank and Butler Lumber Company. Through thiscross long-term relationship,Read MoreEssay about Butler Lumber Case Study Solution644 Words   |  3 PagesButler Lumber Case Study Solution Options: The Butler Lumber Company (BLC) could obtain from Suburban National Bank maximum loan of $250,000 in which his property would be used to secure the loan.   Northrop National Bank is considering BLC a line of credit (LOC) of up to $465,000.   BLC would have to sever ties with Suburban National if they were to have this LOC extended to them.       | 1988 | 1989 | 1990 | 1991Q1 | EBITDA coverage (times) | 2.5 | 2.26 | 2.15 | 2.1 | Debt Equity Ratio

Free Argumentative Essays Police Brutality - 738 Words

J Free Argumentative Essays: Police Brutality 777 Words 4 Pages Police Brutality Police work is dangerous. Sometimes police put in situations that excessive force is needed. But, because some officers use these extreme measures in situations when it is not, police brutality should be addressed. The use of excessive force may or may not be large problem, but it should be looked into by both the police and the public. For those people who feel racism is not a factor in causing the use of excessive force, here is a startling fact. In Tampa Bay, Florida, five men died while in the custody of the Tampa Bay police Department (C.C. 27). The thing is, the Tampa Bay Police Department is made up†¦show more content†¦Ã¢â‚¬Å"The number of people killed by police has gone down from the middle 1970 s to the middle 1980 s in major cities,† says Patrick V. Murphy, former head of police commissions in Detroit, New York, and Washington, D.C. (C.C. 17). Also, in Kansas City, Missouri, a police department there has 1,110 officers. Amazingly, the only received approximately 108 complaints from the public about those 1,100 officers. Adding to the belief that police brutality isn t a very big problem, most legal authorities and officials agree that the use of excessive force by police officers is going down. In fact, they say that they see brutality declining from twenty years ago (C.C. 57). Police brutality is defined as involving the unnecessary and unjustified use of force be that either physical or verbal. Gerald Williams, president of the Police Executive Research Forum (PERF) commented, â€Å"Let me assure you we are committed to a professional level of policing with an emphasis on fairness, humanity, and integrity† (C.C. 168). Other than the police stopping brutality internally, the use of civilian review boards can be used. These boards must be able to receive all the evidence in a case, including the police audio tapes, in order to make fair judgment if excessive force was used or not. If excessive force is presentShow MoreRelatedMedia Violence9754 Words   |  40 Pagesnormalization of aggression and the lack of empathy in our society. Study after study has shown that viewing encourages aggression and desensitization in children. The debate is over. Media violence causes violence among those who are exposed to it. This essay describes how the depiction of violence is evolving in a number of media formats. It analyzes how, and why, violence is used by entertainment and information industries. It offers an overview of research findings, an outline of government responsesRead MoreLogical Reasoning189930 Words   |  760 PagesSacramento, CA 95819 USA ii iii Preface Copyright  © 2011-14 by Bradley H. Dowden This book Logical Reasoning by Bradley H. Dowden is licensed under a Creative Commons AttributionNonCommercial-NoDerivs 3.0 Unported License. That is, you are free to share, copy, distribute, store, and transmit all or any part of the work under the following conditions: (1) Attribution You must attribute the work in the manner specified by the author, namely by citing his name, the book title, and the relevantRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesshooting baskets). Management skills are: (1) linked to a more complex knowledge base than other types of skills and (2) inherently connected to interaction with other (frequently unpredictable) individuals. A standardized approach to welding or shooting free throws may be feasible, but no standardized approach to managing human beings is possible. On the other hand, what all skills do have in common is the potential for improvement through practice. Any approach to developing management skills, therefore

Job Hunting Free Essays

â€Å"The United States economy seems to be at its lowest at the moment,† can be found headlining The Los Angeles Times. The unemployment rate has been at its highest since the Great Depression and statistics have shown that for over a year now the unemployment rate in the Inland Empire has been at 12 percent. As our society continues to stumble, America continues to decrease the number of job openings available. We will write a custom essay sample on Job Hunting or any similar topic only for you Order Now Because of this job hunting today is a very difficult process. To begin with due to a staggering economy there are fewer job openings available but more people trying to look for jobs. People all over the country are being laid off due to budget cuts. For example it is said that three hundred teachers are to be laid off this year all over San Bernardino Unified School District, Rialto Unified School District, and Riverside Unified School District. Teachers being laid off will cause a struggle for those on the hunt for a job because those who are currently looking for work will now be competing not only with the ones already on the hunt but also with three hundred others who have just been added to the statistics. For example a friend of mine, ten years ago was a business man working for a large corporation receiving great pay. Now my friend, the same one who was once a businessman can be found working at McDonalds as a cook, getting paid minimum wage because the corporation he worked for went bankrupt. He didn’t have any other options open for him and he had to settle with whatever it was that he could find at the time. The elderly have families to support at home and the young have their own bills to pay as well. Competition increases day by day and to be able to find a job just gets harder and harder. Furthermore, many people don’t have much education and with not much education the situation becomes harder on them to find a job. Education now plays a great role when applying for a job. In our society there are those people with AA degrees and/or BA degrees that are applying while others have nothing at hand. For example I recently applied at a hotel for a desk front clerk. At my group interview I was competing against a lady who held an accounting degree and who previously had experience. I, on the other hand, only held a high school diploma and had fast food experience. I was turned down because I had neither a degree nor experience. Being able to attain a job becomes harder on those who are just entering the workforce. With budget cuts all around the state and cities there aren’t many options open to civilians. For example my best friend who is at an academy to become a cop has just been told that there will be no job openings available for him once he’s graduated. His situation is due to the fact that the County of San Bernardino will be cutting 50 percent of the county’s work force such as paramedics, police, and firefighters. Situations like this slow down the process and make it harder on one to be able to attain a job. Lastly due to the advancement in technology companies/corporations are cutting down on workers. Our society now needs less manual labor than what it once used to. A robot can do the job that a hundred people used to perform, in less amounts of time and with no pay. For example America once had manual labor being performed at car factories but with the invention of robots manual labor is not needed anymore. Car parts are now being made by robots and having robots benefits the company because the company can now produce more quickly and save millions of dollars on labor. Computers are another example of automation competing against human kind. For example over the course of the next three years Foxconn, the world’s largest electronic manufacturer, will be adding a total of one million robots and computers to the corporation. The only meaning this holds is that over the next three years there will be thousands and thousands of people left unemployed. With robots and computers taking over, hundreds are left without a job and by the looks of it our society will continue to become more computerized and programmed. There are thousands of people who are unemployed today. Job hunting today is affected by a staggering economy, education, and the advancement in technology. Under the circumstances it becomes crucial for one to be able to find some kind of job. Day by day job hunting becomes more competitive with fewer chances to a new opportunity. How to cite Job Hunting, Essay examples

Comm Chapter Outline free essay sample

When reading these chapters I felt like theres a lot of useful things I need to be using not only for this class but other classes as well. In the last presentation there were things I lagged on. For example in one of the sections it said using more than one examples are crucial to when making a point or presenting something. I did not use enough examples in my presentation which made not only my presentation less on time but less informative to my audience. Another problem I tend to have trying to organize things I brainstorm.When I write them out but I usually end up having my Information in all types of places. I also Like the advice the book gave on how using note cards Instead of lined paper would be more effective and easier. One section I found that want as helpful was the statistics part. We will write a custom essay sample on Comm Chapter Outline or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I havent had many assignments In any of my classes that had me use visual lad for statistics. I felt they should have cut down on the Information on the statistics and elaborated more on the comparison and contrast.I wanted to know what other ways I can use comparisons and contrasting when vying my speech and what benefits can be used as well. I havent used compare and contrast in a while and I forgot most of the benefits it gives. Were things I lagged on. For example, in one of the sections it said using more than one example is crucial to when making a point or presenting something. I did not use enough examples in my presentation which made not only my presentation less on time but less informative to my audience. Another problem I tend to have trying to information in all types of places. I also like the advice the book gave on how using tot cards instead of lined paper would be more effective and easier. Assignments in any of my classes that had me use visual aid for statistics. I felt they should have cut down on the information on the statistics and elaborated more on contrast In a while and I forgot most of the benefits It gives. Com 122 Chapter 5 6 Outline By stay_bountiful One section I found that want as helpful was the statistics part. I havent had many giving my speech and what benefits can be used as well.