...Modern day music lyrics speak of love trials and significant important memories the authors have experienced, ones that they intertwine and manipulate to set a specific atmosphere throughout their work. William Butler Yeats, has a similar source of inspiration for some of his work. Yeats often wrote his poems about Maud Gonne. Yeats has proposed to Gonne several times, and got rejected each occasion. His rejections never stopped him from being inspired by her. “When you are old and grey and full of sleep,/And nodding by the fire”. (Yeats~When You Are Old) This goes to show that Yeats can picture Gonne and himself growing old together and watch each other go through the process of life, and also shows she inspired this poem. It seems to be obvious that Gonne does not feel the same way about Yeats. As you start to read Yeats, you will begin to realize...
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...MEMORANDUM To: Mr. George Dodge Date: 1th June 1991 Subject: Business Analysis of Butler Lumber Business and Loan Recommendation We would like to make concise summaries of a prospective client, Butler Lumber Company led by Mr. Mark Butler- a sole owner and president. Butler Lumber Company was founded in 1981 as a partnership by Mark Butler and Henry Stark, located in growing suburb area of a large city in the Pacific Northwest. Company typical products include plywood, molding, and sash and door. Generally, sales revenue was high in Q2-Q3 of each year. Product sold was limited in local market, distribution channel available on telephone order taking only, and there are no sales representatives employed. Key success factors for the company is cost efficiency and having good relationship with suppliers. In year 1988 Mr. Butler decided to buy share back from Mr. Stark in 1988 worth $105,000 the payment for Mr. Stark’s note was made in this year. The major portion of this amount was raised by a secured loan $70,000 with 11% interest rate. As we analyze the company balance sheet between 1988 to 1st quarter of 1991, net worth increased approximately 32% as the company has net profits every year. Use of funds under Assets are account receivables, inventories, and fixed assets; increases of 102%, 133%, and 29% respectively. The reasons are that the company is unable to collect money from customers based on 30-day credit term (average DSO is 40 days) and inventory...
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...Modern day music lyrics speak of love trials and significant important memories the authors have experienced, ones that they intertwine and manipulate to set a specific atmosphere throughout their work. William Butler Yeats, has a similar source of inspiration for some of his work. Yeats often wrote his poems about Maud Gonne. Yeats has proposed to Gonne several times, and got rejected each occasion. His rejections never stopped him from being inspired by her. “When you are old and grey and full of sleep,/And nodding by the fire”. (Yeats~When You Are Old) This goes to show that Yeats can picture Gonne and himself growing old together and watch each other go through the process of life, and also shows she inspired this poem. It seems to be obvious that Gonne does not feel the same way about Yeats. As you start to read Yeats, you will begin to realize that:...
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...They say bigger is better - but not in the case of this lovely resort. I was informed that Sandals Halcyon is the smallest of the three Sandals resorts in St. Lucia - but certainly the most charming. I was completely captivated by this resort upon entering. It is best described by Sandals Resort themselves: “Of all the Sandals beach resorts, it has been said that perhaps Sandals Halcyon Beach best defines the Caribbean—set on a palette of lush gardens bordering the tranquil Caribbean Sea.” Concealed in the unpolished beauty of St. Lucia is Sandals Halcyon Beach - an all-inclusive resort that prides itself with Caribbean architecture complementing its calming beach and lush gardens. With all its charm, Sandals Halcyon Beach renders its guests to familiarize themselves with other parts of St. Lucia with the 'Stay at One, Play at Three' exchange program with neighboring resorts Sandals Grande St. Lucian and Sandals Regency St. Lucia. Couples can relax at Halcyon Beach, as well as enjoy transfers to the other nearby resorts to discover 15 restaurants, 12 pools, 11 whirlpools, and 23 bars during their stay.” [ (Sandals, 2011) ] What Sets Them Above The Rest? * Sandals Resort offers an innovative concept in their all-inclusive environments, contrived to give vacationers completely worry-free accommodations. This allows guests to relax and more effectively utilize their vacation time. * Prides themselves with introducing the couple’s only concept. * They...
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...Butler Lumber Company To examine Butler’s current financial situation and to answer the question of how well Butler is doing are not an easy task. There are many things to look into. Let us start with net working capital. Net working capital= current assets- current liabilities 1988 1989 1990 1991 current assets 468 596 776 932 current liabilities 260 375 535 690 net working capital 208 221 241 242 In thousands of dollars For 1991, only first quarter’s data is provided, so in the following discussion, we us the first quarter’s data to represent year 1991. Using excel, I calculated the net working capital of Butler Lumber Company from year 1988 to year 1991. Net working capital can give us some ideas how much the company’s potential reservoir money is. We see a steady increase in net working capital through these years, which is a good sign. However, merely the absolute numbers are not sufficient to make further judgment. Thus, I make this chart on common size analysis based on the total asset. net working capital 208 221 241 242 total assets 594 736 933 1094 net working capital common size 0.350168 0.300272 0.258307 0.221207 In thousands of dollars From the data in the above chart, we can see net working capital stands a very large weight in the total assets, thought decreasing. This also may be positive, because the decreasing of net working capital common size is not from the decrease of net working capital but from the increase of total...
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...Suggestion as Butler’s financial advisor Butler Lumber Company is on a growing path. It is evident from the case that the volume has been built due to successful price competition, careful control of operating expenses and purchases at substantial discounts. Even in case of an economic downturn its business is protected to a large extent as 55% of its sales are from the repair market. The company is growing at a good pace of 19%, 34% and 34% for the year 1989, 1990 and 1991 respectively. The data is tabulated below. % increase in sales of Butler Lumber Company Net Sales 1988 1989 1990 Expected 1991 1991 first quarter 1697000 2013000 2694000 3600000 718000 Increase NA 316000 681000 906000 % Increase NA 18.621096 33.830104 33.63028953 All amounts in $ The company has a considerable amount of debt also which is tabulated below Current outstanding debts of Butler Lumber Company Particulars Year 1991 Notes Payable, bank 247000 Notes Payable, trade 157000 Accounts payable 157000 Accrued expenses 36000 Total Debt 597000 All amounts in $ As his financial advisor I would suggest Mr. Butler to go for this loan amount. This would help in meeting the expansion and sustaining the growth of his company. Even though the operating expense for 1990 is 658000 and a purchase of 2042000 which is an increase of 34 % and 27.7 % over the previous year, respectively the growth is promising. The amount of $465000 might be needed in...
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...The Butler The Butler is based loosely off of a true story. Eugene Allen was an African American who worked for the White House for 34 years. He started at the bottom and worked his way up the ranks until he became Maître d'hôtel, which is the highest position of butlers. He retired as head butler in 1986 after serving eight different presidents. This film follows Cecil Gaines through his life on the plantation to the serving in the White House. The film starts in 1926 Macon, Georgia. Cecil Gaines was a young boy working on a cotton plantation with his parents. The son of the household took his mother and raped her and when his father confronted him, he was shot and killed. It was at this time that Ms. Annabeth, the mother of the household, took Cecil in and raised him to be a house servant. Cecil grew up and left the plantation once he was older. He got a job at a hotel and was taught by a fellow butler, Maynard. Maynard turned down a job at the White House and recommended Cecil for it, and Cecil ultimately received the job. He started during Dwight Eisenhower’s term, just as the Civil Rights Movement was getting started. From there the film follows Cecil witnessing notable events of the twentieth century during his time at the White House. The Butler ends with Cecil waiting to meet the first African American president, Barack Obama. The Butler’s depiction of history is mostly accurate. It follows the historical timeline and touches on every civil rights action that took...
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...THE RIGHTS AGAINST COMTEMPORARY SLAVERY (DOMESTIC WORKERS AND BONDED LABOUR) IN NIGERIA AND THE UNITED STATES. WRITTEN BY: 2121745 DATE: 26TH APRIL 2014 WORD COUNT: 2,770 WORDS As estimated by the International Labour organization (ILO), there are over 20.9 million people in this 21st century that are still enslaved. Another source states that there are 29.8 million people who are still held in modern day slavery. When the word “slavery” is mentioned, the idea that comes to mind is when people are taken from India, Africa and other third world countries, to the West Indies or America, for the purpose of them to work in sugar cane plantation. Although that kind of slavery was abolished in the 19th century, men, women and children are still slaves, thus, the birth of modern slavery. “Slavery is the status or condition of a person over whom any or all of the powers attaching to the right of ownership are exercised”. Slavery is so much graver than forced labour, Slavery involves forced labour, but not every forced labour involves slavery. Despite being prohibited by so many International instruments, which includes the 1948 Universal Declaration of Human Rights and the 1956 UN Supplementary Convention on the Abolition of Slavery, the Slave Trade and Institutions and Practices Similar to Slavery and the 1926 UN Slavery Convention, Contemporary slavery still takes place in various forms, affecting all gender, races and color. Modern slavery has been in many forms...
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...HARVARD BUSINESS SCHOOL 9-292-013 REV: JANUARY 4, 2002 Butler Lumber Company To examine Butler’s current financial situation and to answer the question of how well Butler is doing are not an easy task. There are many things to look into. Let us start with net working capital. Net working capital= current assets- current liabilities | 1988 | 1989 | 1990 | 1991 | current assets | 468 | 596 | 776 | 932 | current liabilities | 260 | 375 | 535 | 690 | net working capital | 208 | 221 | 241 | 242 | In thousands of dollars For 1991, only first quarter’s data is provided, so in the following discussion, we us the first quarter’s data to represent year 1991. Using excel, I calculated the net working capital of Butler Lumber Company from year 1988 to year 1991. Net working capital can give us some ideas how much the company’s potential reservoir money is. We see a steady increase in net working capital through these years, which is a good sign. However, merely the absolute numbers are not sufficient to make further judgment. Thus, I make this chart on common size analysis based on the total asset. net working capital | 208 | 221 | 241 | 242 | total assets | 594 | 736 | 933 | 1094 | net working capital common size | 0.350168 | 0.300272 | 0.258307 | 0.221207 | In thousands of dollars From the data in the above chart, we can see net working capital stands a very large weight in the total assets, thought decreasing. This also may be positive...
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...Indian Economy: Progress and Prospects By Deepak Mohanty ∗ It is an honour and privilege for me to be speaking at Harvard to such a distinguished audience. I thank Professor Benjamin Friedman and Professor Tarun Khanna for this opportunity. I will be speaking on the Indian Economy. India is home to 1.21 billion people, which is about 17.4 per cent of the global population. However, it accounts for only 2.4 per cent of world GDP in US dollar terms and 5.5 per cent in purchasing power parity (ppp) terms. Hence, there exists a huge potential for catch up. The global welfare too is linked to progress in India as reflected in the keen global interest in India. But, India seems to inspire and disappoint at the same time. This is reflected in various comments on the Indian economy. Yasheng Huang and Tarun Khanna in their much debated article in July 2003 issue of Foreign Policy had observed: “Can India surpass China? This is no longer a silly question”. The July 23rd 2011 issue of The Economist observed; “Twenty years ago they said the yardstick against which India should be measured was its potential. On that measure, there is much to do.” As a fledgling democracy, India’s economic experiment of planned development was held out as an example to many aspiring low-income countries in the 1950s. While some countries raced ahead in the development process, India lagged behind. This is evident from the fact that it took 40 long years from 1950-51 for India’s real per capita GDP to double...
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...CASO BUTLER LUMBER COMPANY DIPLOMADO CONTROL DE GESTION UCSC PROFESOR : JUAN GALLEGOS M. SITUACION DE LA EMPRESA La situación de la empresa Butler al primer trimestre del año 1991 es la siguiente : 1. Una empresa en crecimiento en ventas, esperándose un 30% de incremento el presente año 1991, manteniendo el crecimiento del año 1990; considerando además un crecimiento de 59% durante los tres últimos años. 2. La empresa enfrenta una alta presión financiera , inicialmente por la salida del Sr. Stark que implico un importante desembolso el año 1988 y que junto al crecimiento implantado por el Sr. Butler a la compañía hace necesario tomar endeudamiento tanto con Bancos como con proveedores, lo cual a implicado un aumento de 80% de los pasivos respecto al año 1988, concentrados en 57% en pasivos corriente, generado un aumento en costos financieros de 153%; lo que redunda en una baja en la Rentabilidad sobre ventas , aumento del riesgo por aumento de leverage y disminución en la cobertura de intereses. 3. Respecto al negocio se encuentra con índices de rentabilidad estables, tanto en margen bruto como en rentabilidad de activos, con rotación de inventarios disminuyendo e incrementos de stock de 75% respecto año 1988, lo que implica un incremento de un 15% app. sobre el crecimiento en ventas del mismo periodo. 4. Una empresa con prestigio en el Mercado e involucrada en un segmento dentro del área de materiales para la construcción sin mayor...
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...1.&2. Why does MR. Butler have to borrow so much money to support this profitable business? Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales? According to the given information in the materials, Mr. Butler expects the net sales in 1991 would be 3.6 million. So the expected growth rate will be 3600K/2679Kx100%=33.6%. EBIT =Net sales-cost of goods sold-operating expense Assuming the cost of goods sold, operating expense will grow in the same rate, from 1988 to 1991, EBIT of Butler Lumber Company was respectively 50, 61, 86 and 115. The growth rate of EBIT was 22%, 41% and 33.7%. Clearly the company is on a fast growing track. At the mean time, we need to know if Mr. Butler has enough money to maintain such a fast growth. Accounts payable in 1991 would be 256K x133.6%=342K If we assuming the notes payable, accrued expenses, and long-term debt is same with first quarter in 1991, total liabilities in 1991 would be 836K The net worth in 1991 would be the net worth in 1990 plus the net income in 1991, the net income in 1991 would be 44Kx133.6%=58.8K, so the net worth would be 406.8K. Total liabilities and net worth in 1991 would be 1242.8K . Total assets in 1991 would be 933Kx133.6%=1246.5K. So there will be 3.7K shortage of fund for the company. Therefore, Mr. Butler needs to borrow money to reach the expected growth and his estimate of the loan requirements was right. The company needs...
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...Shumann Butler Lumber Company Background: Butler Lumber Company had been founded in 1981 in a suburb of a large city in the Pacific Northwest. The company s operations were limited to the retail distribution of lumber products. Their typical products included plywood, moldings, and sash and door products. Despite good profits Butler Lumber Company experienced a shortage in cash and found it necessary to increase its bank loans. Issues: y y Why does a Profitable company such as Butler Lumber need external Financing? Should Butler Lumber Company accept the discount that is being offered from its suppliers? y Project the Butler Lumber Company s balance sheet and Income Statement for all of 1991 under two scenarios If they accept the discount If they don t accept the discount Analysis: Butler Lumber Company is a profitable company anticipating tremendous growth, and typical of a company in this phase of the business cycle, the cash needed to meet obligations outstrips its inflow from operations. Butler s exponential growth has caused them to need external financing, because they can t self-fund their working capital needs. The might be able to mitigate some of this through better inventory management control such as squeezing their suppliers on credit terms or for increased volume discounts. Going forward their fixed costs will also help build economies of scale which should diminish their external financing demands in future fiscal periods. Butler is banking...
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...The issues presented in the Butler Lumber case deal with the financing of growth. The main problem is that the company needs additional financing due to rapid growth and they are trying to decide whether or not to enter into a loan contract for $465,000 with Northrop National Bank in addition to their already $247,000 loan from Suburban National Bank. However, the Suburban National Bank is also deciding if it should lend the money to Butler Lumber. Suburban anticipated sales in 1991 to be $3.6 million, but according to my calculations the forecasted sales are only $1,672,940 which comes from adding the net sales of $718,000 to the forecasted amount of $954,940 in 1991. Looking at the forecasted income sheet and balance sheet there is an obvious difference of $349,140 between the total assets and total liabilities and so the liability side needs to be increased. The required increase in assets is $361,020 and the spontaneous increase in liabilities is $11,880 coming from the forecasted accrued expenses of $36,000 subtracted from the forecasted accrued expenses of $47,880 to get a total of $11,880. Here is where I hit a road block because I noticed that subtracting $11,880 from $361,020 gives the amount of $349,140 without having to subtract any retained earnings. If it’s possible that 100% of earnings are paid out dividends then this would mathematically be correct, even though it is very unlikely that this is the case. Because this is consistent mathematically I am going...
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...salary plus commission, they can grow the revenues even more. By having this person work on commission, this will eat into the profit margin for the materials he is selling. But the net impact to the BLC will be positive. I would advise Mr. Butler to select the LOC for up to $465,000 because he can take out as little as he needs. He does not need all $465,000 this quarter, but he may need some in the first and last quarters of the year because he obtains 55% of his revenues in the second and third quarters. So it is strategically important for him to have access to this capital because of the nature of his cyclical business. 3) Application of financial framework 4) Assumptions and special mitigating circumstances Assumptions: * It’s fair to assume that at the time of this there is some tension behind the seens between Mr. Butler and his current bank. * I assume that Mr. Butler doesn’t have a huge knowledge of finances due to his lack of cash flow, buyout loan, and slow payments on accounts payable that cost him more money. * His personal finances seem to be in decent shape and he is receiving letters that speak to his credibility as a person. Although those letters could be written by personal friends of Mr., butler. * I would personally have concerns when dealing with this company as a banker. The first concern would relate to why so much money is needed when it seems that the current amount borrowed is...
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