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Arthur Brothers Construction Ltd.
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Reference: IVEY-9B12B022-E
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Year: 2012
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Number of pages: 3
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Geographic Setting: Canada
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Publication Date: Aug 17, 2012
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Fecha de edición: Aug 17, 2012
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Source: Ivey Business School (Canada)
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Type of Document: Case
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Industry Setting: Construction;
Description
A general contracting company specializing in the construction of single-family homes was known for its exceptional craftsmanship and was, therefore, highly sought after during the busy construction season from late spring to early fall. As a result, clients secured a spot in the company's schedule by paying deposits. This left the company with excess cash during the off-season, which it invested each year in trading investments. The case centres on the transactions associated with these short-term trading investments.
Learning Objective
The case provides an introduction to accounting for both stock-trading investments (purchase, sale, dividends, stock splits, and market valuations) and bond-trading investments (purchase and sale with accrued interest, interest payments, and market valuations using present value tables).