Details about a company's current and contingent liabilities appear in a number of places in the annual

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Details about a company's current and contingent liabilities appear in a number of places in the annual report. Use the Gildan Activewear Inc. (Gildan) financial statements in Appendix A at the end of this book and on MyAccountingLab to answer the following questions.

1. Give the breakdown of Gildan's current liabilities at October 2, 2011.

2. Gildan's joint venture partner has a revolving line of credit.

a. What is the amount of this line of credit?

b. What is the interest rate?

c. What is the security for the line of credit?

d. How much is currently borrowed on the line of credit?

3. Does Gildan have any commitments and contingent liabilities outstanding? Describe the main types of commitments and contingencies, and discuss where you found this information.

4. Why is there no amount shown on the balance sheet for commitments and contingent liabilities?

5. What type of guarantees does Gildan have? Describe the type and the amount of these guarantees.

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... 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... 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...

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Req 1 Gildans current liabilities at October 2 2011 and 2010 all amounts in thousands Accounts payable and accrued liabilities 315269 186205 Income taxes payable 5024 315269 191229 Req 2 The Companys ...View the full answer

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Question Posted: Sep 16, 2017 08:08 AM

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Details about a company's current and contingent liabilities appear in a number of places in the annual

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Req 1 Gildans current liabilities at October 2 2011 and 2010 all amounts in thousands Accounts payable and accrued liabilities 315269 186205 Income taxes payable 5024 315269 191229 Req 2 The Companys ...View the full answer

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