Base your answers to the following questions on the balance sheet and statement of income of Dorel

Question:

Base your answers to the following questions on the and statement of income of Dorel Industries Inc. in Exhibit 3-26. Based in Canada, Dorel manufactures juvenile products (strollers, car seats, etc.), bicycles, and home furniture at facilities throughout the world.
In Exhibit 3-26
Consolidated Balance Sheets
As at December 30, 2009 and 2008
(All figures in thousands of U.S. dollars)

a. Assuming that all the sales were on account, prepare a single journal entry to record the sales for 2009 and another entry to record the amount that was collected from customers in 2009.
b. Prepare a single journal entry to record the cost of goods sold for 2009.
c. As a manufacturer of products such as baby strollers, car seats, bicycles, and home furniture, what types of costs do you think Dorel incurs in producing the inventory?
d. Compare the profitability of Dorel in 2009 to 2008, using the profit margin ratio and the return on assets. (Refer to Chapter 2 if you need to review the two ratios. Note that, in order to be able to calculate the return on assets for both years, you will have to use the total assets for each year, rather than average total assets.)
e. During 2009 Dorel acquired four companies that produce or distribute bicycles or juvenile products in Belgium and Australia. Acquisitions normally result in an increase in assets for the acquiring company (Dorel). What was the change in Dorel's total assets from 2008 to 2009? Which asset had the largest change? Comment on your findings.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...