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Essay text:
Therefore Butler Lumber needs to determine if it wants to grow the business or stay happy where they are.
II.
Butler has a few options in regards to taking a line of credit with Northrup National Bank of $465,000. Butler has recently not taken many purchase discounts due to shortage of funds. If Butler receives the loan, the company would have enough working capital to be able to take advantage of the net discounts. Sales have increased from '88-'89 15.7%, '89-'90 25.28%, and expected sales increase from '90-'91 is 25.17%. Sales have been built on price competition, but could generate much more by hiring more salespeople...
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