case wilson lumber

essay B

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The ROE of the company shows that it generated a 12,7 % profit on every dollar invested by shareholders in 1984.

Taking into consideration that Wilson Lumber is a small company it can be considered average profitable.

Ratios shows that company is not highly liquid, but such figures can be acceptable. Company financed mostly by debtors and also uses its own resources. But difference between them is not high.

The company is capable to meeting its interest obligations from operating earnings. Term Sheet Borrower: Wilson Lumber Company Lender: Northrop National Bank Amount: $325,000 Interest Rate: Mooting at one month Labor + 3% Maturity: 90 day Payments: Principal payments due at the earlier of (I) receipt of payment of any financed receivable or (ii) facility expiration date.

Interest due monthly. Guarantors: Roger Wilson Covenants: ;Borrower promises to use the loaned funds for working capital ;Borrower remises to provide the lender with annual financial statements that are accurate and prepared in accordance with generally accepted accounting principles of a specified jurisdiction. ;Borrower agrees that representatives of the lender will be able to examine its property and records. Borrower promises to inform the bank of any event of default or other condition that will materially affect its ability to perform its loan obligations ;Borrower agrees to not establish any liens against its present or future property unless the borrower’s obligations to the bank is also be secured by that property.

Borrower promises to pay any taxes assessed when due. Borrower promises to sever his relationship with Suburban National Bank Sec ritzy:

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