Butler Lumber Case

?Nicholas Cappucci Cost Management Systems Professor Wall pantryman Lumber 1.Mark butler has to suck in so much money to support his business because of his plans to embellish his business and to consolidate his debt. Receiving the bring forget allow pantryman to make sure his blood is ready for the projected gross revenue increase in the coming year. Cash flexibility is as well as an issue with this ships company because they submit so many large(p) debts, getting the loan will improve the cash flexibility. 2.I do agree with Butlers estimate of the loan measuring stick in order to expand his business and eliminate his interchange debt. He might not need to borrow $465,000 reasonable for this quarter. When considering the majority of his revenue is from the second and third quarters the wasted money would be used in the first and locomote quarters of the year. 3.As the financial advisor I would urge Butler to go ahead with the loan from Northrop National Bank. Attaining this debt would help supercharge the companys expansion process before the spend when the do most of the sales. The loan would make it so that Butler could consolidate his debt and have a lower interest ordinate as well. As the Banker I would not approve of the loan for $465,000 to Butler Lumber.

I feel that the company is still too small for that size of a loan and doesnt have enough current assets to put up as collateral. accustomed the companys good reputation and successful chronicle it wouldnt be hard to get this loan approved. genius thing that I would like to see is better inventory control, the inventory turnover is decreasing and Butler needs to scrape up up with a way to fix it or else it will be hard to improve the working capital. Also the accounts due increase greatly from year to year which reflects poor parade time for the company. If Butler could improve these areas then there would be little reason why his loan request would be turned down aside form the fact that his company is still new and growing. If you want to get a to the full essay, order it on our website: Orderessay

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