Clarkson Lumber Company

Clarkson Lumber Co

Discussion Questions

I hope everyone has a copy of the case. One thing you need to keep in mind is that any case can be analyzed in many ways. For the purposes of this course, I will give you certain questions that one should think about. I will post a list of questions for all the cases in the course content before our class begins officially.

Clarkson has been expanding rapidly for several years. Part of the available funds have also been used to buy out the partner. Mr. Clarkson must decide whether to continue to expand, and if so, how to raise the necessary funds.

The main questions that you need to discuss are:

1. Why has Clarkson Lumber borrowed increasing amounts despite its profitability?

2. How has Mr. Clarkson met the financing needs in the past?

3. How much will Mr. Clarkson