Short Cases


1			In May 1968, Ross Ferguson was hired as a sales representative for a paper company based in Ottawa, Ontario. Ross was assigned to a territory that included northern Ontario and Quebec. His regional duties required him to meet with the founder of the Black Dog Press Ltd., Martin Black, at least four times per year. For more than 30 years The Black Dog Press Ltd. (Black Dog), a printing company, served Scotchminster, Ontario, a small community in northern Ontario. For thirteen years, Ross and Martin developed a friendship in addition to their loyal business relationship. By March 1981 Martin Black was thinking about retirement. Mr. Black was 67 years old and had no succession plan in place. Ross was 38 years old and realized that his job as a paper company representative was not a long term-career path that he wanted to follow; both for family and business reasons due to the long hours on the road. During a routine sales call, Martin offered to sell the business to Ross and his wife Marcia. Ross had always wanted to own his own business and Marcia wanted a career outside of the home. Since Ross traveled frequently Marcia had always stayed at home to raise their two children, Alexis (Alex) and Oliver (Ollie), and manage the household responsibilities. However, Alex, now 13 years old was old enough to watch Ollie (10) and the children were increasingly able to help their mother out around the house. This business opportunity was perfect for Marcia. She could become the finance manager of their own company which would not only give her control of the company’s money but would also provide her with a career tailored to her unique abilities. Assume the role of the Ferguson’s banker. They have approached you to obtain financing: Required: What financial accounting information would you request? What other types of information would you request (both quantitative and qualitative)? What questions would you ask (the questions you ask may be more important than the answers they are willing to provide)?




2			The Winnipeg Advocates for Social Planning (WASP) are a community-based, non-profit agency that promotes social justice and a healthy community through social research, public education, policy analysis and advocacy. Over the last three years, WASP has experienced significant operating deficits and as a result has reduced its staff to two employees and an Executive Director and accessed some of their long-term savings. In January 2007, several Board members expressed concern over the viability of sustaining WASP in the long term. In October 2007 WASP has scheduled their annual meeting. Brian Khari, a local entrepreneur and founder of a successful private corporation, has been nominated for the treasurer’s role in this non-profit organization. Brian is unsure about accepting this position on WASP’s Board of directors. It is now a couple of weeks before WASP’s annual meeting and Brian has asked you to help him with his decision to accept the role as Board treasurer. Required: Brian has experience managing and owning a profitable company. However, he has never volunteered his time in the non-profit sector. Please explain to Brian the reasons business entities (corporations, proprietorships and partnerships) prepare accounting information versus the reasons non-profit organizations provide accounting information. Describe the role of the Board treasurer to Brian (in this case the preparer)

Your Results:

E-mail Your Results