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Clarkson Lumber

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Clarkson Lumber Company
Case : Assignment, Due October 4

1. In your group, assign a Team Administrator, a Notekeeper, and a Number Cruncher(s). These do not need to be independent roles (the Team Spokesperson may be the Number Cruncher, etc.). The other members of the group will contribute their thoughts and ensure that their spokesperson has all the relevant facts to speak for their group. a. The Team Administrator keeps the group on track to ensure that the discussion is on topic without venturing out of scope for this case. The key here is to develop an attractive solution in a relatively short period of time. b. The Notekeeper is capturing the group’s thoughts on paper to be used to develop a cohesive solution. This is very important so that no essential components of dialogue are lost during brainstorming. c. The Number Cruncher(s) will work through financials based on the proposed short-term financing. The financial results produced by this individual(s) will play a predominant role in determining the group’s proposal. You should use your best judgment for projections.

2. The case should be approached in a stand-alone fashion. There is no need to go looking for supporting data. You may make assumptions as appropriate.

3. You will need to: Be prepared to present any portion of the case orally (no need for slides)

For the written report, follow this guideline but be sure to organize the report in story format rather than simply answering the questions.

• Why is Clarkson Lumber so short of funds despite its record of profitable operations? How has Mr. Clarkson met the financing needs of the company during the period 1993-1995? Has the financial strength of Clarkson Lumber improved or deteriorated? • Prepare financial forecasts to ascertain the amount of loan needed and when

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