In order to forecast some of the figures we attached the common size balance sheet and income statement. The problem appears to be whether to accept a new relationship or to stay with the present bank under the current borrowing limit.
This would amount to 2, est.
That gives us the interest of off the LTD of 5, combined with new loan interest of 49, for a total of 54, Butler and his family will have the 46, profit for their living expenses.
Largely due to his increased sales our forecast shows that under the same cost assumptions for operating expense and COGS, as well as same levels of ending inventory in relation to sales, Mr. All of the above debt that needed to be repaid came up toThat meant a reduction fromearly level to 74, which was aboutBefore we got to forecast a balance sheet we decided to calculate a debt structure under some new assumptions.
Also notes to his old bank would have to be paid amounting to anotherWe are going to assume that he lowers his accounts payable to that amount.
In order to bring this company into a good standing Mr. Butler needs to bring his accounts payable closer to reality, as we specified before to a level equal to 10 days of purchases.
Finally to bring him up to date on his trade credits he needed to pay anotherButler Lumber Company It seems to us that Butler has a decision to make. In order to know which solution is better we are going to create a pro-forma balance sheet and an income statement.
Butler will have a profit of about 46, after taxes. We know that his wife has a half interest in the house, which is worth about 55, that tell us the entire equity position in the house is aboutWe are going to look into purchases and calculate the amount, which represents his ten-day spending on purchases.
While projecting the income statement we assumed that the interest for the year would be comprised of the new loan interest assume they need the whole amount at Butler will have to make some personal sacrifices, though they likely will reimburse themselves in the future because he is making more money then he ever did and that is likely to continue.
The sales amount for the year of are going to be assumed at 3, while relying on banks estimate.View Notes - Only Excel from AEM at Cornell University. Exibit 1 Projected Income Statement for Butler Lumber Co. for period ending December 31, ('s) Net Sales CoGS Beginning inventory.
Please complete the following from the textbook: Case Butler Lumber Company This case has been selected to give you an opportunity to apply financial analysis to a firm. To do this you will use the firm’s published financial and select financial ratios to make a determination about the case.
(Please look at the Continue reading "Butler Lumber Company". 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.
Marcelo A. Delfino Análisis! Porqué el Sr. Butler tiene que pedir un préstamo para sostener su negocio si este es rentable?! Usos de fondos. Butler Lumber Co. inc, Maynard, MA.
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Butler Lumber Company Background: Butler Lumber Company was founded inin a large city in the Pacific Northwest.
Typical products of the company included plywood, moldings, and sash and door products.Download