巴特勒公司案例

1、巴特勒公司案例【篇一：巴特勒公司案例】butlerlumber compa ny after rapidgrowth itsbus in ess duri ng rece nt years, butlerlumber compa ny 1991a nticipated furthersubsta ntial in crease sales.despite good profits, compa nyhad experie need hadfou nd in creaseits borrow ing from suburba nn ati onal bank maximumloa n subur

2、ba nn ati onal would make anyone borrower butlerhad bee n able staywith in limit only relyin gvery heavily tradecredit. additi on ,suburba n no wask ing butlersecure itsreal property （不动产）.mark butler, sole ownerbutlerlumber compa ny, thereforelook ing elsewhere n ewba nking relati on ship where he

3、would un securedloa n. butler had rece ntly bee n in troduced georgedodge, muchlarger bank, n orthrop nati onal bank, twome n had ten tatively discussed no rthropba nk might exte nd butlerlumber up maximumamou nt $465,000.butler thought sizewould provide. after discussi on, dodge had arra nged credi

4、tdepartme nt no rthrop nati onal bank in vestigatemark butler hiscompa ny. butlerlumber compa ny had bee n foun ded markbutler hisbrother- in- law, henry stark. 1988butler bought out stark s in terest bus in ess.stark hadtake paidoff givebutler time financingn ecessary majorporti on fundsn eeded $70

5、,000,n egotiated late1988. buildi ngs,carried in terestrate quarterly in stallme nts yearover n ext10 years. grow in gsuburb largecity pacific no rthwest. compa nyowned land railroadsid in g,a nd two large storage buildi ngs had bee n erected compa nysoperati ons were limited retaildistributi on lum

6、berproducts localarea. typical products in cluded plywood, mold in gs, doorproducts. qua ntity discou nts creditterms n et30 days operaccou nt were usually offered customers.sales volume had bee n built up largely successfulprice competiti on, made possible carefulc on trol operat in gexpe nse qua n

7、titypurchases substa ntialhbs casesare developed solely classdiscussi on. cases en dorseme nts,sources primarydata, in effectivema nageme nt. copyright1991 preside nt harvardcollege.to order copies requestpermissi on reproducematerials, call 1-800-545-7685,write harvaard bus in ess school publishi n

8、g,boston,ma 02163, publicati onmay retrievalsystem,used spreadsheet,ortra nsmitted anyform any mea ns- electro nic ,mecha ni cal,photocopy in g,record in g,or otherwise-without harvardbus in ess school.discou nts. much doorproducts, which con stituted sig nifica nt items sales,were used repairwork.

9、about 55% totalsales were made sixm on ths from april through september. salesreprese ntatives were employed,orders being taken exclusively over telephone.annualsales $1,697,000in1988,$2,013,000 1989,a nd$2,694,000 1990yielded after- tax profits 1988,$34,000 $44,000i n1990.1 operat ing stateme nts y

10、ears1988-1990 threem on ths ending march 31,1991, markbutler en ergeticma n, 39 years age,who worked long hours jib.he assista ntwho, no rthrop nati onal bank, hasbee n doing cando about everyth ing butlerdoes otheremployees n umbered 10 early1991, whomworked drovetrucks whomassisted itscustomary in

11、 vestigati on prospectiveborrowers, no rthrop nati onal bank sent in quiries concerning mark butler hadbus in ess deali ngs hislarge suppliers, barkercompa ny, wrote con servativeoperati on hisbus in ess appeals us.he has wastedhis money disproporti on atepla nt in vestme nt. his operat ing expe nse

12、s couldpossibly hehas pers onal con trol over every feature hisbus in ess, hepossesses sou nd judgme nt workharder tha n anyone haveever known.goodpers on ality, gives him goodtur no ver; frommy pers onal experie nee watchi nghim work, hekeeps close check hisow n credits. all othertrade letters rece

13、ived ban kbore out lumberbus in ess, which has his major source in come,butler held join tly hiswife househad cost $72,000 $38,000.he also held $70,000life in sura nee policy, payable hiswife. she owned in depe nden tly halfi nterest houseworth about $55,000. otherwise, sizeablepers onal in vestme n

14、ts. ban kgave particular atte nti on debtpositi on currentratio readyma rket company sproducts alltimes salesprospects were favorable.bank sinvestigator reported:“ sales reach$3.6 million mayexceed lumbershould rise substantiallynearfuture.” otherhand, generaleconomic downturn might slow down sales.

15、butler lumber s sales,however, were protected somedegree from fluctuati ons n ewhous ing con structi on because relativelyhigh proporti on itsrepair bus in ess. projecti ons bey ond 1991 were difficult prospectsappeared good con ti nuedgrowth butlerlumber s bus in ess over foreseeablefuture. ba n ka

16、lso no ted rapid in crease butlerlumber s accounts notespayable recentpast, especially 1991.theusual terms tradeprovides payme ntsmade withi n 10 days in voicedate. accou nts were due 30days in voiceprice, suppliersord inary did payme ntslagged somewhat behi nd duedate. duri ng lasttwo years, butler

17、 had take n very few purchase discounts because fundsarising from his purchase stark sinterest additionalinvestmentswork in gcapital associated compa ny sin creas ing sales volume. trade credit seriouslyexte ndedbutlerstrove holdhis bank borrow ing withi n $250,000ceil ing imposed suburba nn ati ona

18、l bank. bala nee sheets december31,1988-1990,a nd march 31,1991,are prese nted ten tativediscussi ons betwee n george dodge markbutler had bee n about revolv in g,secured 90-day note exceed$465,000.the specificdetail loa nhad bee nworked out, dodgehad expla ined agreeme ntwould in volve sta ndardcov

19、e nan ts(立书保证)applying loan.he cited illustrativeprovisions additionalborrowing would networking capital (营运资金净额 )would have agreedlevel, additi on ali nvestme nts fixedassets could made only priorapproval limitati on swould fun dsfrom butler.i nterest would floati ng-ratebasis perce ntagepo ints ab

20、ove primerate(the rate paid bank smost creditworthy customers).dodge indicated initialrate paidwouldabout10.5% under conditions early1991.both men also understood butlerwould sever分开 hisrelati on ship suburba nn ati onal bank hee ntered loa nagreeme nt no rthrop nati onal bank, sales in 1986 1987amo

21、u nted $ 1,103,000,respectively; profit data lateryears because shiftfrom corporateform corporatio n,butler itsfirst $ 50,000 next $ 25,000 alladditio nal in come above$ 75000. exhibitoperatingstatements yearsending december 31, 1988-1990, firstquarter 1991(thousands dollars)1988 1989 1990 first qua

22、rter 1991 net sales $1,697 $2,013 $2,694 $718 goodssold beginning inventory 183 239 326 418 purchases 1,278 1,524 2,042 660 $1,461 $1,763 $2,368 $1,078 en di ng in ve ntory 239 326 418 556 total cost goodssold $1,222 $1,437 $1,950 522 gross profit 475 576 744 196 operati ng expe nse 425515 658 175 i

23、n terest expe nse 13 20 33 10 n et in come before taxes 11provisio n in cometaxes n eti ncome firstquarter 1990sales operat in gexpe nses in clude cashsalary mr.butler 1989,$85,000 firstquarter 1991,mr. butler also received some perquisitescom monly take n privatelyheld bus in esses. exhibit bala nc

24、esheets december31,1988-1990,a nd march 31,1991(thousands dollars)1988 1989 1990 first quarter 1991 cash 58 48 41 31 accounts receivable, net 171 222 317 345 in ve ntory 239 326 418 556 curre nt assets 468 596 776 932 property, net 126 140 157 162 total assets 594 736 933 1094 notes payable, bank 14

25、6 233 247 notes payable, mr.stark 105 notes payable, trade 157 accounts payable 124 192 256 243 accrued expenses 24 30 39 36 lon g-term debt, curre nt portion curre ntliabilities 260 375 535 690 lon g-term debt 64 57 50 47 net worth 324 432 585 737 net worth 270 304 348 357 total liabilities networt

26、h 594 736 933 1094 study questi ons: butler lumber compa ny whydoes mr. butler have borrowm oney profitablebus in ess? mr.butler consideringclosing his line suburbannational bank newone northropbank. how much n eededfrom n orthrop finan cehis operati ons calculatehis financing n eed, you projectwhat

27、 his bala nee sheet would look like 1991.theamou nt bankfinancing he amou ntun der“no tes payable, bank. ”projecthis bala nee sheet 1991,assume hissales $3.6milli on heexpects) calculateother items your-“ proforma ” financial statements follows(you may use other assumptions youcan show projectedinco

28、me stateme nt: cogs:assume con sta nt operati ngexpe nse: assume con sta nt in terestexpe nse: assume n umbe r,say $34,000 (do n t worry about where comesfrom; we“ wrong ” any way taxes:assume con sta ntpre-tax net in come projectedbala nee sheet : cash:assume con sta nt accou ntsreceivable: assume

29、con sta nt inven tory:assume con sta nt property:assume con sta nt no tespayable, trade: zero (he wants getrid supplierloa ns!) accou ntspayable: assume con sta nt accruedexpe nses: assume con sta nt lon gterm debt n umbers: continue payoff $7,000 ann ually n etworth: calculate 1991 net in come last

30、year s net worth give ny our findings creditli ne mr.butler requesti ngfrom no rthrop eno ugh? doyousee alter native uses bala ncesheet creditli ne upward dow nward?possible exam questi ons: butler lumber company butler ssales accountreceivable 1990were $2,694,000 bankloan interestrate 10.5%.pleasef

31、i nd: averagedays collectpayme nts from its clie nts; highest in terest rate ban kcould possibly charge 10/2/30term offered itscustomers; loa namou nt butler could possibly cut due speedycollecti on. weprojected accou ntpayable $360,000.give n payme ntoffered itssuppliers (10/2/30), please find: ave

32、ragedays payits suppliers; butlercould possibly delay interestrate 10.5%charged n ewaccou nt payable butlerwere allowed doso.【篇二：巴特勒公司案例】butler lumber compa ny after a rapid growth in its bus in ess duri ng rece nt years, the butler lumber company in the spring of 1991 anticipated a further substa n

33、tial in crease in sales. despite good profits, the compa ny had experie need a shortage of cash and had found it n ecessary to in crease its borrow ing from the suburba n national bank to $247,000 in the spring of 1991. the maximum loan that suburban national would make to any one borrower was $250,

34、000, and butler had bee n able to stay with in this limitonly by relying very heavily on trade credit. in additi on, suburban was now asking that butler secure the loan with its real property（不动产）.mark butler, sole owner and preside ntof the butler lumber compa ny, was therefore look ing elsewhere f

35、or a new banking relatio nship where he would be able to n egotiate a larger and un secured loa n.butler had recently been introduced by a friend to george dodge, an officer of a much larger bank, the n orthrop n ati onal bank. the two men had tentatively discussed the possibility that the northrop

36、bank might extend a line of credit to butler lumber up to a maximum amount of $465,000. butler thought that a loa n of this size would provide. after this discussi on, dodge had arran ged for the credit departme nt of the n orthrop n ati onal bank to in vestigate mark butler and his compa ny. the bu

37、tler lumber compa ny had bee n foun ded in 1981 as a part nership by mark butler and his brother- in-law, henry stark. in 1988butler bought out stark s interest for $105,000 andin corporated the bus in ess. stark had take a note for $105,000, to be paid off in 1989, to give butler time to arrange fo

38、r the financing n ecessary to make the payme nt of $105,000 to him. the major porti on of the funds n eeded for this payme nt was raised by a loan of $70,000, negotiated in late 1988. this loa n was secured by land and build in gs, carried an in terest rate of 11%, and was repayable in quarterly in

39、stallme nts at the rate of $7,000 a year over the n ext 10 years.the bus in ess was located in a grow ing suburb of a large city in the pacific n orthwest. the compa ny owned land with access to a railroad sid in g,a nd two large storage build ings had bee n erected on this land. the company s opera

40、tions were limited to the retail distribution of lumber products in the local area. typical products in cluded plywood, moldi ngs, and sash and door products. qua ntity disco unts and credit terms of net 30 days on oper acco unt were usually offered to customers. sales volume had bee n built up larg

41、ely on the basis of successful price competiti on, made possible by careful con trol of operati ng expe nse and by qua ntity purchases of materials at substa ntialhbs casesare developed solely as the basis for class discussi on .cases are not inten ded to serve as en dorseme nts,sources of primary d

42、ata, or illustrations of effective or in effective man ageme nt. copyright1991 preside nt and fellows of harvard college.to order copies or request permissi on to reproduce materials, call 1-800-545-7685,write harvaard bus in ess school publish in g,bost on ,ma 02163, or go to . no part of this publ

43、icati on may be reproduced,stored in a retrieval system,used in a spreadsheet,or transmitted in any form or by any mean s-electr onic ,mecha ni cal,photocopy in g,record in g,or otherwise-without the permissi on of harvard bus in ess school. disco un ts. much of the mold ings and sash and door produ

44、cts, which con stituted sig nifica nt items of sales, were used for repair work. about 55% of total sales were made in the six mon ths from april through september. no sales represe ntatives were employed,orders being take n exclusively over the teleph on e.a nnual sales of $1,697,000 in 1988,$2,013

45、,000 in 1989,and $2,694,000 in 1990 yielded aftertax profits of $31,000 in 1988, $34,000 in 1989, and $44,000 in 1990.1 operating statements for the years 1988-1990 and for the three mon ths ending march 31,1991, are give n in exhibit 1. mark butler was an en ergetic man, 39 years of age, who worked

46、 long hours on the jib. he was helped by an assista nt who, in the words of the investigator of the northrop national bank, “ has bee n doing and can do about everyth ing that butler does in the organization.” other employees numbered 10 inearly 1991, 5 of whom worked in the yard and drove trucks an

47、d 5 of whom assisted in the office and in sales.as part of its customary in vestigatio n of prospective borrowers, the n orthrop n ati onal bank sent inq uiries concerning mark butler to a nu mber of firms that had bus in ess deali ngs with him. the man ager of one of his large suppliers, the barker

48、 compa ny, wrote in an swer:the con servative operati on of his bus in ess appeals to us. he has not wasted his money in disproporti on ate pla nt in vestme nt. his operat ing expe nses are as low as they could possibly be. he has pers onal con trol over every feature of his bus in ess, and he posse

49、sses sound judgme nt and a willi ngn ess to work harder tha n anyone i have ever known. this, with a good pers on ality, gives him a good tur no ver; and from my pers onal experie nee in watch ing him work, i know that he keeps close check on his own credits.all the other trade letters received by t

50、he bank bore out this opi nion.in additi on to owning the lumber bus in ess, which has his major source of in come, butler held joi ntly with his wife an equity in their home. the house had cost $72,000 to build in 1979 and was mortgaged for $38,000. he also held a $70,000 life in sura nee policy, p

51、ayable to his wife. she owned in depe nden tly a half in terest in a house worth about $55,000. otherwise, they had no sizeable pers onal in vestme nts. the bank gave particular attention to the debt position and curre nt ratio of the bus in ess. it no ted the ready market for the company s products at all t