DE LEON, Jason Charles FINACMA
ROMERO, Nikki Case Study
CASE STUDY: Clarkson Lumber Company
The Clarkson Lumber Company is currently applying for a loan request from the Northrup National Bank. The bank had arranged for its credit department to investigate Mr. Keith Clarkson, owner and president of the company, and to study the company as well. The following information is required and necessary for the group to analysis the case study and to be able to come up with the decision of approving of denying the loan request.
I. Company Information
a. Company Profile
Clarkson Lumber Company was founded in 1981 as a partnership by Keith Clarkson and Henry Holtz. The company has fifteen employees; eight of whom are working in the yard and driving trucks, while seven of the employees assist in the office and in sales. The business is located in a growing suburb of a large city in the Pacific Northwest. The land that is owned by the company is accessible to a railroad siding, and four large storage buildings have been erected on the land. In terms of its distribution, it is limited to the retail distribution of lumber products in the local area. The company distributes products such as plywood moldings and sash and door products. And as regards to the quantity discounts and credit terms, a 30 day net on open account is usually offered to customers.
b. Company History
During the past three years, in terms of net income, the financial strength of the company has improved as shown in the increase in sales volume during the period of 1993 through 1995. The basis for this built up on sales volume is on the successful price competition. Moreover, the consistent profitability of the company is attribut ...