CHAPTER 26 Bim Consultants Inc.
JOHN R.S. FRASER
Senior Vice President, Internal Audit, and former Chief Risk Officer, Hydro One Networks Inc.
Bim Consultants Inc. is a medium-sized consulting firm. It is a corporation with 30 partners who own most of the shares. It has 10 offices across Canada with 3,000 staff, and has been in business for 30 years. Senior staff also own shares and participate in an annual bonus scheme. Salaries are generally on the low side, but bonuses in good years can be quite high. The balance sheet is sound (see Exhibit 26.1).
Bim Consultants Inc. | ||
Summary Balance Sheet | ||
As of December 31, 2014 | ||
2014 | 2013 | |
Year ended December 31 (Canadian dollars in millions) | $ | $ |
Current Assets | ||
Cash and Short-Term Investments | 12 | 7 |
Accounts Receivable | 175 | 168 |
187 | 175 | |
Current Liabilities | ||
Accounts Payable | 34 | 27 |
Short-Term Loans | 100 | 110 |
134 | 137 | |
Working Capital | 53 | 38 |
Fixed Assets | ||
Leasehold Improvements | 196 | 178 |
Furniture and Equipment | 100 | 94 |
Less Accumulated Depreciation & Amortization | (153) | (128) |
143 | 144 | |
Net Assets | 196 | 181 |
Share Capital | ||
Common Shares | 100 | 100 |
Retained Earnings | 96 | 81 |
196 | 181 |
Exhibit 26.1 Bim Consultants Balance Sheet
The company has always prided itself on its customer focus. “Customers are number one” has been the mantra from the chairman, Mr. Smooth, for many years. Recently, however, revenue has been stagnant, and the younger partners are getting restless, wondering if the older partners have ...
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