Ontario Printing Limited Essay

2047 words - 8 pages

In September 2009 Alex Jesse and Evan Shayne decided to end their 10 year business relationship as owners of Ontario Printing Limited (OPL). OPL is a commercial printing business that Alex and Evan organized in 1999. They each own 50% of the common shares of OPL but Alex operates and manages it. Evan participates in major decisions but, for the most part, is not involved in day-to-day operations. Alex and Evan have agreed that Alex will purchase the shares of OPL from Evan at fair market value. They have agreed that fair market value will be equal to five times average net income for the past two years, including the fiscal year ending October 31, 2009. Alex and Evan also agree that the accounting policies should be in accordance with generally accepted accounting principles. Alex and Evan recognize that adjustments to the final selling price might be necessary to take specific circumstances into consideration. Since their decision to part ways Evan has not been involved in any way in the activities and operation of OPL.You obtain the following information about OPL: 1)OPL has used its financial statements primarily for tax purposes. The company writes off any expenditure that it makes that can be justified for tax purposes regardless of whether they have any future benefit.2)The company owns a small building in the north end of the city. Its offices occupy the ground floor of the building and the rest of the building is leased to tenants. Since the building was acquired its market value has increased from $800,000 to $950,000, based on increases in neighbouring property values.3)OPL has two copying machines that do not produce high-quality copies compared with more technologically current equipment. The equipment is used infrequently and only for jobs that do not require high-quality. The equipment has a net book value of $12,920.4)Alex and Evan have charged many personal expenses to the business over the years.5)Alex took a salary of $125,000 during the year. A manager doing Alex's work at a competitor's company would be paid between $50,000 and $75,000, depending on the size of the company and responsibilities. Evan agreed to this salary several years ago.6)In mid-October 2009 Alex launched a major advertising campaign to increase business. Alex hopes the advertising will allow OPL to increase utilization of its equipment and allow it to expand capacity in the near future. During the last two weeks of October OPL spent several thousand dollars for media and direct contact with potential clients.7)In early October 2009 OPL shutdown for two days for annual maintenance of equipment. The work is done each year to ensure equipment operates at maximum efficiency and to avoid costly breakdowns. The annual maintenance was last done in November 2008.8)In late October 2009 Alex sold some equipment at a loss of $37,000 9)During the summer of 2009, Evan negotiated a contract with a customer on behalf of OPL to produce instruction manuals for its products....

Find Another Essay On Ontario Printing Limited

Recycling Processes for Wastewater Essay

1572 words - 6 pages ). Wastewater engineering: an overview (3rd ed.). New York, NY, USA: McGraw Hill Inc. Exall, Kirsten. 2004. Water reuse 2: applications. A Review of Water Reuse and Recycling, with Reference to Canadian Practice and Potential, 39(1), 13-28. Federal Activities Environmental Branch. (1976). Guidelines for effluent quality and wastewater treatment at federal establishments (Report EPS-1-EC-76-1). Toronto, Ontario: Can. Government Printing Office

Exploring the Origin Of the Song, Yankee Doodle

2189 words - 9 pages ,1960. 451-452. Collier Encyclopedia . "American Revolutionary Period." Lauren Bahr, Bernard Johnson , Louis Bloomfield. 2. Ontario, Canada: RF Collier and Son Limited. 78. Encyclopedia Britannica. "Lexington." Day Otis Kellogg. 9. 14. NY : The Werner Company, 1898. Encyclopedia Britannica. " Concord." Day Otis Kellogg. 9. 11. N Y : The Werner Company 1899. Encyclopedia Britannica. "Washington, George." 11. 28. Cambridge England: The

Soviet Women in the Early U.S.S.R.

2455 words - 10 pages approached 40% and rose to 50% in the 1930’s. This was achieved by the formation of the Unified Labor School. This school had a nine year program that was completely, coeducational, and universal. It allowed any student, male or female, to learn the same subject material; science and mathematics being highly stressed (Warshofsky Lapidus 137) . The majority of female students went on to secondary education institutions, but these were limited to the

Toyota Way

7186 words - 29 pages , contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-06-23 Mucki Tan, deputy chairman and main shareholder of the Rodamas Group, was thinking about the future of his group of companies. It was a hot and humid


6738 words - 27 pages development of the country not only in terms of GDP growth, but also in terms of structural changes that have transformed Malaysia from basically a primary producer to an industrialised economy.In the early 1960s, foreign investors were largely involved in developing import-substitution industries such as food, beverages and tobacco, printing and publishing, building materials, chemicals and plastics. In the late sixties, as the limited domestic market

Impact of Trade Liberalization on Developing Countries.

5990 words - 24 pages it is a comparatively wealthy developing nation.[15] The other countries shown in the table are all considerably poorer. An implication of this pattern is that TRIPS will become considerably more costly to developing countries as they grow richer. Therefore, while patent fees may present only a limited burden to these countries at present, they will become a much greater drain on countries' resources and pose more of an obstacle to development as

Reality and Illusion in Shakespeare's Hamlet - Reality, Appearance and Deception

896 words - 4 pages Reality and Illusion in Hamlet   Shakespeare’s play, Hamlet, begins with the appearance of a ghost, an apparition, possibly a hallucination. Thus, from the beginning, Shakespeare presents the air of uncertainty, of the unnatural, which drives the action of the play and develops in the protagonist as a struggle to clarify what only seems to be absolute and what is actually reality. Hamlet's mind, therefore, becomes the central force of the

Sub-plots in Hamlet

1118 words - 4 pages Sub-plots in Hamlet   There are many things that critics say make Hamlet a "Great Work," one of which is the way that Shakespeare masterfully incorporates so many sub-plots into the story, and ties them all into the main plot of Hamlet’s revenge of his father’s murder. By the end of Act I, not only is the main plot identified, but many other sub-plots are introduced. Among the sub-plots are trust in the Ghost of King Hamlet, Fortinbras, and

Hamlet as Victim and Hero

1301 words - 5 pages Hamlet as Victim and Hero      Hamlet, Prince of Denmark, a Shakespearean tragedy, tells the story of Prince Hamlet, who gained the knowledge of a terrible incident that his kingdom had suffered. Claudius, the king of Denmark and Hamlet's uncle, had killed his own brother, the king, who was also the father of Hamlet, and married his brother's widow. Hamlet suffered these traumas to a severe degree, and his only relief was to defeat his

Essay on Light and Dark in Antigone

1188 words - 5 pages Use of Light and Dark in Antigone   The "Golden Age" of Greece is noted for its many contributions to the creative world, especially in its development of the play. These performances strived to emphasize Greek morals, and were produced principally for this purpose. Antigone, by Sophocles, is typical. The moral focused on in Antigone is the conflict between physis (nature) and nomos (law), with physis ultimately presiding over nomos

charant Creon as the Main Character of Antigone

1231 words - 5 pages Creon as the Main Character of Antigone   Throughout the Greek play Antigone by Sophocles, there exists a dispute as to who should receive the designation of main character. Antigone, the daughter of the cursed King Oedipus, as well as Creon, stately king of Thebes, both appear as the key figures in this historic play. I believe that Creon, king of Thebes, should be considered the main character in this work of Greek theater. Three

Similar Essays

Toronto Sun Essay

3616 words - 14 pages form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases

Japanes Internment In Canada Essay

1801 words - 7 pages ' choices were limited. They could stay in Canada, but only if they moved east of the Rocky Mountains and settled in Ontario, Quebec or the Prairie provinces.People could be deported to Japan even if they were not of Japanese origin. Those Japanese who moved east to get away from deportation were prohibited to buy land; they had to lease land, and to grow crops they needed special licenses. These licenses were upheld until April 1946. Some Japanese

Hewlett Packard Essay

3183 words - 13 pages Business Marketing Overview Introduction The marketing strategies and environment of the organization that is being discussed in this report is Hewlett Packard (HP) with respect to its printing-related products. This organization has over 25 years experience of providing scalable technologies for high availability, data replication, disaster recovery and continuity and

Case: Mail Order In Canada Essay

1872 words - 7 pages Mail Order in CanadaIntroductionLinda King proposed the opening of a retail lingerie and leisure wear store in London, Ontario. The original proposal was to open a retail store that would offer an alternative to the traditional marketing of lingerie. Linda proposed to attract consumers through an elegant atmosphere, rather than drawing them into the store out of necessity. The company's focus would put emphasis on the store layout, front