OK.  Jimmie and I duplicated effort just a bit.  Attached is the memo and the 
spreadsheet.  Note that in the memo, we have a dispute about whether $750k is 
adequate.  Therefore, I've left questions 4 and 5 attached to the memo for 
you folks to reconcile (if they take advantage of discounts and get A/R and 
inventory rates back in line with '93 rates, is $750 enough?).  

Also, I've included a common-size income statement in exhibit 1, a cash flow 
statement in exhibit 2, and I, too, completed exhibit 3.  We may want to 
clean up some of the calculations in the spreadsheet, given that we'll likely 
need to turn them in as attachments.

Hope this helps.  I'd do more, but I'm off for the airport and New 
York--won't be in class tomorrow.

Best,
Jeff




	JcjCal02@aol.com
	01/28/2001 01:01 AM
		 
		 To: Jeff.Dasovich@enron.com, dwindham@uclink4.berkeley.edu
		 cc: guinney@haas.berkeley.edu, JcjCal02@aol.com, jdasovic@enron.com, 
jjackson@haas.berkeley.edu
		 Subject: Re: Clarkson


To simplify the analysis, I completed Exhibit 3 for 1993, 94, 95 for clarkson
in the attached spreadsheet.  Whoever calculated ROA forgot to add interest
expense and used year end assets instead of average.  For ROCE again, average
instead of ending should be used.  The level of current liabilities jumps out
when you compare it to the rest of the industry.  Dylan is right the growth
in inventory is also alarming.  I will look at the data some more tomorrow.
Jimmy

 - CLARKS~1.XLS