Rushway Brothers Lumber And Lumber Case Study

4596 Words 19 Pages
Register to read the introduction… (RLBS) was established by George Rushway in 1922 in Ilderton, Ontario as an extension of his lumber mill near Denfield, Ontario. At first the business sold only lumber, but when his two sons, Gordon and Douglas, joined the business in 1945 and 1951 respectively, the variety of products grew rapidly. In addition to serving the retail market for home improvement enthusiasts, the business served the wholesale contractor market for single family dwellings and other buildings. Douglas Rushway started a construction business as part of RLBS, specializing in barns, agricultural warehouses and other such buildings to be constructed within 50 kilometers of Ilderton. The business achieved a reputation for quality products, good service and fine workmanship. The business was reorganized in 1959 after the death of George Rushway with each of the brothers owning 50 per cent of the common stock. In 1985, after 40 years in the business and upon reaching 60 years of age, Gordon Rushway, Charlotte’s father, decided to retire from the business on an active basis and just consult and perform special tasks. He kept his 50 per cent share in the business and participated in the dividends to common shareholders. Douglas Rushway took over the running of the business in 1985 and ran it single-handedly for three years, delegating the day-to-day work to supervisors. Finally in 1988, he appointed Jack Fairlee as manager of the construction operation and Paul Gaudet as manager of the retail and wholesale products …show more content…
The amount is not estimated for interim statements.

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9A92B020

Exhibit 1 (continued) BALANCE SHEETS December 31, 1988 to 1991 With Interim Results at June 30, 1992 and 1991

6 mos Jan to Jun 1992 1991 1991 1990 1989

1988

$

378,294 245,612 11,794 635,699 153,244 19,754 576,552 1,323,903 19,754 523,294 896,214 19,754 510,646 1,136,093

133,964 215,962 18,689 368,615 358,983

53,394 67,074 15,700 22,320 55,000 213,488 139,678

157,748 118,433 9,969 45,116 27,500 358,766 245,927

413,382 229,107 23,953 45,414 27,500 739,356 196,563 19,754 430,007 1,388,969

237,074 233,867 14,502 44,785 27,500 557,728 222,734 19,754 425,115 1,225,331

LIABILITIES Current Liabilities Bank loan Accounts payable and accruals Taxes payable Current - long term debt Dividend payable Total Current Liabilities Long term debt SHAREHOLDERS' EQUITY Common stock Retained earnings TOTAL LIABILITIES & EQUITY 19,754 656,590 $ 1,465,288

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9A92B020

Exhibit 2 INCOME STATEMENTS

6 mos Jan to Jun 1992 $ 1,543,856 1,181,049 362,807

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