Butler Lumber Case Study Zachary Scott Brown FIN 6420 – Dr. J. Robert Malko February 4, 2012 I: Statement of Financial Problem: Butler Lumber Company, a rapidly growing lumber products and retail distribution organization, faced a critical challenge that would determine its future success and level of profitability. The company, led by its founder Mark Butler, had a bright future as its products were consistently in demand in both the new construction and repair work fields. However, Butler
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I. Statement of Financial Problem Butler Lumber Company, a growing, profitable business has exhausted it’s credit limit with its current bank and needs additional capital to: * Continue to fund growth * Consolidate debt * Improve cash flexibility In this case study, I will examine the following problem: During the years of 1988-1990, why has Butler Lumber increased sales volume but experienced a decrease in cash flow? This problem is historical, and I will base my analysis from information
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Butler Lumber Company Introduction Butler Lumber Company was found in 1981 by a partnership of Mark Butler and his brother in law, Henry Stark. In 1988, the business was incorporated after the acquisition of Butler over Stark’s interest. At the same time, the company had shifted from a partnership into a corporation. The company’s operations are about retail distribution of lumber products included plywood, moldings, and sash and door products. During the period of 1988-1990, Butler Lumber
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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
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Fin 522 Cases in Financial Strategy Group Assignment – Butler Lumber Case Vedvati Shrotre (shrotre2) Xiaoyue Sun (xsun52) Chenxiao Zhu (czhu19) 1. If the first estimated growth of sales is 30 percent, compare it to the value of the secured 90 day note that Northrup Bank is willing to lend Butler Lumber. What are the results? Our conclusion is that the new credit line provided by Northrop National Bank would not cover Butler Lumber’s cash shortage under the assumption of 30 percent sale growth
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Finance Butler Lumber I: Butler Lumber’s financial problem is weak net cash flow; too much cash tied-up in inventory and debt obligations, which is reflected in liquidity, asset and debt management metrics. II: Cash flows from operations should exceed, be sufficient, to cover reinvestment in equipment and building. Specifically, expenditures for investment in Plant should exceed the annual depreciation charge. As well, funds from operations should not only be sufficient to invest, but
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Butler System BUS 612 Advanced Project Procurement September 06, 2010 Introduction With the increased globalization, competition and complexity in global supply chains, more companies have realized that supply chain management is critical to the optimal organizations overall operation. It is not longer just the responsibility of the warehouse manager and logistics director. In the past, many organizations didn’t manage their supply chains they left that up to the suppliers.
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Butler Systems Darrell Smith BUS 612 Advanced Project Procurement Professor: Dr. Andrew Jackson October 8, 2012 Butler Systems is a manufacturer of environmental control systems and power conditioning equipment and is a lead supplier of computer support systems and the largest supplier of precision air-conditioning and power protection systems in the world. Butler Systems HD-5 battery is the primary component for emergency supply system (Benton, 2010, p.455). The
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evolution. The trial took place in Dayton, Tennessee on July 25th 1995. Scopes was accused of violating the Tennessee’s Butler Act by teaching Charles Darwin’s Theory of Evolution. The Butler Act forbids the teaching of theory that goes against the biblical story of Creationism. Scopes was found guilty and was charged a fine of $100. In 1925, the Tennessee legislature passed the Butler Act which prohibits the teaching of the theory of evolution in all the universities, normal and all other public school
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Assembly. According to Source B Black Tuesday was possibly one of the greatest events in the movement of Bahamian independence. The PLP (Progressive Liberal Party) was formed November 23rd 1953.The PLP consisted of Sir Lynden Pindling, the late Sir Milo Butler, Mr. Cyril Stevenson, Mr. Sammie Issacs, the late Clarence A. Bain, and the late Sir Randol Fawkes. The formation of the PLP was a first for The Bahamas because it introduced party politics. At this time the majority group in the House was the Bay
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