Alimentation Couche- Tard is the second- largest convenience store operator in North America. It has more than 9,000 outlets: Couche- Tard in Qu̩bec; Mac۪s in central and western Canada; and Circle K in the United States. The following table includes selected information from its financial statements (amounts in millions of U. S. dollars):

Required:
1. Compute the following amounts for each of the fiscal years 2011 and 2012:
a. Collections from customers.
b. Purchases of merchandise from suppliers.
c. Payments to suppliers.
d. The trade receivables turnover ratio and the average collection period.
e. The inventory turnover ratio and the average period to sell inventory.
f. The average period for conversion of inventories into cash.
2. The company uses the indirect method to report its cash flows from operations. How would the changes in trade receivables, inventory, and trade payables be reported in the operating activities section of its statement of cash flows for 2012?
3. In the notes to its financial statements, the company states that the cost of merchandise in its distribution centres is determined according to the FIFO method. Would you expect the company€™s net earnings to increase or decrease if it used the weighted- average costing method instead of FIFO? Explain.
4. Assume that the company purchased canned products from a local supplier on April 26, 2012, with terms F.O.B. shipping point. The merchandise, at a cost of $ 1.4 million, had not arrived at the company€™s warehouse until April 30, and was not included in the inventory count at year- end. What effect would this error have on the company€™s net earnings for 2012? Show calculations.

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Year Ended Year Ended April 29, 2012 Apri 24,2011 Year Ended April 26, 2010 Cost of sales Eamings before income taxes Income tax expense Trade receivables Inventories Trade payables 22,997.5 20,028.4 603.9 146.3 375.2 543.9 812.7 19,550.4 15,804.7 490.4 121.2 315.5 526.0 701.7 15,781.1 13.334.5 368.6 114.7 252.7 469.9 618.2