Clarkson Lumber
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Title: Clarkson Lumber

Essay Details:

Subject: Business
Author: Preston M
Date: January 30, 2015
Level: University
Grade: B
Length: 3 / 875

Essay text:

Clarkson himself leads a frugal lifestyle with little personal debt. Clarkson Lumber is a company experiencing rapid growth but with a constant cash flow crisis. This is not an unusual confluence, but it does require some financial decision-making. Their current state of under financing makes a number of their ratios look poor. There are several reasons for the cash flow problems at Clarkson Lumber. One is Mr. Clarkson's decision in 1994 to buy out his partner Mr. Holtz. The note had 4 semi-annual installments of $50,000 beginning June 30, 1995 with an 11% interest rate. Clarkson Lumber is not generating enough profit to pay off this debt in such a short space of time...

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