1. Calculate, to two decimal places, the company's quick ratio using amounts reported in its financial statements for the years ended December 29, 2013, and December 30, 2012. What do the changes in this ratio suggest about the company's ability to quickly pay its liabilities?
2. Calculate, to two decimal places, the company's times interest earned ratio for the year ended December 29, 2013. Does this ratio cause you any concern about the company's ability to meet future interest obligations as they become due?
Refer to the financial statements of Rona Inc. in Appendix A at the back of this book or download the annual report from the Cases section of Connect.
Refer in Appendix A,
RONA INC.
CONSOLIDATED STATEMENTS OF INCOME
AND STATEMENTS OF OTHER COMPREHENSIVE INCOME
Years ended December, and December 29, 2013
(in thousands of Canadian dollars, except per share amounts)

The related notes form an integral part of these consolidated financial statements.
RONA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Years ended December 29, 2013 and December 30, 2012
(in thousands of Canadian dollars)

(a) Additional detail of share capital is provided in Note 23.
The related notes form an integral part of these consolidated financial statements.
RONA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 29, 2013 and December 30, 2012
(in thousands of Canadian dollars)

The related notes form an integral part of these consolidated financial statements.
RONA INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
as at December 29, 2013, December 30, 2012 and December 26, 2011
(in thousands of Canadian dollars)

The related notes form an integral part of these consolidated financial statements.
On behalf of the Board,
(s) Réal Brunet......................................... (s) Robert Chevrier
Réal Brunet............................................... Robert Chevrier
Chairman of the Audit Committee .................. Executive Chairman of the Board

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CONSOLIDATED STATEMENTS OF INCOME 2013 2012 Restated (Notes 10 and 32) $4,444,175 Continuing operations Revenues (Note 4) Earnings before interest, taxes, depreciation, amortization, impairment of non-financial assets, restructuring costs and other charges (Note 5.1) $4,192,192 162,088 188,654 Restructuring costs and other charges (Note 5.4) Depreciation, amortization and impairment of non-financial assets (Note 5.2) Operating (loss) income (82,879) (113,850) (34,641) (37,261) (107,261) 44,132 Finance costs (Note 26) (14,000) (48,641) (12,462) (Loss) income before income taxes 31,670 Income tax recovery (expense) (Note 7) 13,044 (8,281) Net (loss) income from continuing operations (35,597) 23,389 Discontinued operations Net loss from discontinued operations (Note 10) Net (loss) income Net (loss) income attributable to: Owners of RONA inc. - Continuing operations (117,417) $ (153,014) (5,128) 18,261 $ (36,614) (117,417) $ 21,603 Discontinued operations (5,128) (154,031) 16,475 Non-controlling interests 1,017 1,786 $ (153,014) $ 18,261 Net (loss) income per share attributable to owners of RONA inc. – basic and diluted (Note 30) (0.38) (0.96) (1.34) 2$ 0.10 Continuing operations Discontinued operations (0.04) %24 0.06 CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME 2013 2012 Restated (Notes 10 and 32) $ (153,014) $ 18,261 Net (loss) income Other comprehensive income (loss), net of income taxes : Items that will be reclassified subsequently to net income Cash flow hedges - Loss for the year - Reclassification to income (195) 1,374 (2,666) 574 Impact of foreign currency translation related to the net investment in an associate 306 (120) (2,212) 1,485 Items that will not be reclassified subsequently to net income Remeasurements of net defined benefit liability (Note 27) 2,130 (1,881) (4,093) Total other comprehensive income (loss) 3,615 Total comprehensive (loss) income $ (149,399) 14,168 Total comprehensive (loss) income attributable to: Owners of RONA inc. $ (150,416) 12,382 Non-controlling interests 1,017 1,786 $ (149,399) 2$ 14,168