1. How much inventory does the company hold on December 29, 2013? Does this represent an increase...
Question:
2. Does the company follow the lower of cost and net realizable value rule? What method(s) does the company use to determine the cost of its inventory? Describe where you found this information.
3. Compute to one decimal place the company's inventory turnover ratio and days to sell for the most recent year, given that the cost of goods sold is $3,095,095 (in thousands).
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 to 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) ReÌal Brunet......................................... (s) Robert Chevrier
ReÌal Brunet............................................... Robert Chevrier
Chairman of the Audit Committee .................. Executive Chairman of the Board
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh