Base your answers to the following questions on the 2014 financial statements for Le Château Inc. in Exhibits 1-10A to C.

Exhibit 1-10b LE CHATEAU INC.€™S 2013 CONSOLIDATED STATEMENTS OF LOSS
Years ended January 25, 2014 and January 26, 2013
[In thousands of Canadian dollars, except per share information]

In the questions below, the year 2014 refers to Le Ch̢teau۪s fiscal year ended January 25, 2014, and the year
2013 refers to the prior year ended January 26, 2013.
Required:
a. Le Ch̢teau has issued consolidated financial statements. What does the word consolidated at the top of a financial statement tell you about the company۪s structure?
b. Le Ch̢teau prepared a classified statement of financial position. Calculate the difference between current assets and current liabilities at the end of 2014, and at the end of 2013.This amount is referred to as working capital. Did the company۪s working capital improve in 2014? Explain.
c. Find the following amounts in Le Ch̢teau۪s statements (note that the amounts are in thousands of Canadian dollars):
i. Sales revenues in 2014
ii. Cost of sales in 2014
iii. Finance costs (cost of debt) in 2013
iv. Income tax expense (recovery) in 2014
v. Net income (loss) in 2013
vi. Intangible assets at the end of 2014
vii. Trade receivables (accounts receivable) at the beginning of 2014
viii. Share capital at the end of 2014
ix. Property, plant, and equipment at the end of 2014
x. Cash flows from operating activities in 2014
xi. Cash payments to acquire intangibles and property, plant, and equipment in 2013
xii. Cash used for the payment of dividends in 2013
xiii. Cash produced from or used for financing activities in 2014
d. Did Le Ch̢teau finance the company۪s assets mainly from creditors (total liabilities) or from shareholders (shareholders۪ equity) in 2014? Support your answer with appropriate calculations.
e. List the two largest sources of cash and the two largest uses of cash in 2014. (Consider cash generated from operating activities to be a single source or use of cash.)
f. Suggest some reasons why there was a loss of approximately $15,986 thousand in 2014, yet cash generated from operating activities was only a negative (or outflow of) $3,356 thousand.

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EKEELT 1-10A LE CHATEAU INC.'s 2013 CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS As at January 25, 2014 and January 26, 2013 in thousands of Canadian dollars] 2014 2013 ASSETS Current assets Cash Accounts receivable note 6 Income taxes refundable Derivative financial instruments Inventories notes 6 and 7 Prepaid expenses Total current assets Property and equipment notes 8 and 12 Intangible assets [note 9) 1,446 1,476 6,663 418 124,878 2,292 137,173 69,870 3,815 210,858 1,783 1,906 3,211 215 123,218 1,890 132,223 83,315 4,672 220,210 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Bank indebtedness fnote 6 Trade and other payables (note 10j Deferred revenue Current portion of provisions inote 11) Current portion of long-term debt [note 12) Total current liabilities 30,767 19,553 3,712 265 7,987 62,284 7,843 391 1,829 13,412 85,759 13,034 20,718 3,558 228 9,844 47,382 14,290 530 2,298 15,912 80,412 Long-term debt Inote 12) Provisions fnote 11 Deferred income taxes [note 14 Deferred lease credits Total tiabilities Shareholders' equity Share capital note 13 Contributed surplus Retained earnings Accumulated other comprehensive income Total shareholders' equity 42,960 3,581 78,253 305 125,099 210,858 42,740 2,664 94,239 155 139,798 220,210 2014 2013 Sales [note 20] 274,840 274,827 Cost of sales and expenses Cost of sales [note 7) Selling [note 8) General and administrative (notes 8 and 9 101,770 155,859 36,218 293,847 (19,007) 2,714 92,565 155,561 35,847 283,973 (9,146) 3,063 Results from operating activities Finance costs Finance income Loss before income taxes Income tax recovery note 14 Net loss (21,708) (5,722) 15,986) (12,186) (3,469) (8,717) Net loss per share note 17 Basic Diluted Weighted average number of shares outstanding (0.59) 59 (0.34) (0.34 25,658,585 27,288,766 1-10C LE CHATEAU INC.'S 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended January 25, 2014 and January 26, 2013 in thousands of Canadian dollars] 2014 2013 OPERATING ACTIVITIES Net loss Adjustments to determine net cash from operating activities 15,986) (8,717) Depreciation and amortization notes 8 and 9 Write-off and net impaiment of property and equipment and intangible assets [notes 8 and Loss on disposal of property and equipment [note 8 18,723 1,897 19,574 2,142 108 (2,539) (1,285) 1,088 336 338 3.063 (23) (2,436 (2,863) 28 (5,722) (3,469) 10.320 (3,030(6,340) 3,980 2,056 Amortization of deferred lease credits Deferred lease credits Stock-based compensation 39 978 Provisions Finance costs 2,714 Finance income Interest paid (13) 13 (2,434) Interest received Income tax recovery Net change in non-cash working capital items related to operations note 211 (5,464) 2,108 (3,356) Income taxes refunded Cash flows related to operating activities FINANCING ACTIVITIES Increase in bank indebtedness Repayment of long-term debt Issue of share capital upon exercise of options Cash flows related to financing activities INVESTING ACTIVITIES Additions to property and equipment and intangible assets [notes 8 and 9/ Proceeds from disposal of property and equipment fnote 8) Cash flows related to investing activities Decrease in cash Cash, beginning of year Cash, end of year 6,036 17,482 13.600 (8,304) 16,323) 159 9,337 (2,723) (6,318) (9,237) 514 (6,318)(8,723) (337) (5,410) 1,783 1,446 7,193 1,783