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Acct 461 Week 2 Case 13-6
Questions
1. How well is Butler Lumber doing?
2. What has been the company’s financial strategy? Why does Mr.
Butler have to borrow so much money to support this seemingly
profitable business? Has he been managing his company’s cash flow
wisely?
3. Do you agree with Mr. Butler’s estimate that he will need up to
$465,000 in 2011. How much will he need to borrow to finance his
expected expansion in sales in 2011 (assume sales volume hits $3.6
million)?