Butler Lumber Company The file Butler - Spring'12.xls contains Exhibit 1 and Exhibit 2 from the case. As Mr. Butler's financial advisor, he has asked you to help him negotiate banking arrangements with Northrup National Bank. Prepare a 2 to 3 page memo (plus exhibits) to Mr. Butler with your recommendations. Your analysis should include: 1. A brief discussion on why Butler Lumber needs funding even though it is a profitable business. 2. Financial projections for the year ending December 1991 through 1993 indicating Butler's need for funds. Use $3.6 million for 1991 expected sales and generate your own revenue projections for 1992 and 1993. 3. Your analysis and memo should reflect the results of sensitivity analysis on key parameters indicating how changes in their values impact on Butler's need for funds. 

Answer rating: 100% (QA)

1 Despite sound profitability Butler Lumber strives for financing since it is facing an unconvention... View the full answer