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Kindly prepare these questions for the Butler Lumber case

1. Why has this profitable co. had to borrow more and more from the
bank?

2. How attractive is it to take the trade discounts?

3. Will a credit line of 465000 $ be sufficient to meet the company’s


needs in 1991 if they take trade discounts?

4. What are the forecasts of butler’s financial needs?

5. What will happen to Butler’s financing need beyond 91? What would
have to occur for the borrowing need to decline?

6. Would you as Mr. Dodge agree to lend Butler lumber company?

7. What are the alternatives open to Butler if Dodge refuses an increase


in credit?

8. What would you do as Mr. Butler?

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