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How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated?
d. How attractive is it to take trade discounts?
Tuesday, January 24: Clarkson Lumber Company (continued)
Reading: a. Note on Financial Forecasting
b. Note on Bank Loans
a. How much of a loan will Mr. Clarkson need to finance the expected expansion in sales to $5.5 million in 1996 and to take all the trade discounts? (Prepare a projected income statement for 1996 and a pro forma balance sheet as of December 31, 1996.)
b. As Mr...
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