Does RONA have any off-balance-sheet liabilities? Describe these liabilities. What impact do the off-balance-sheet liabilities have on your ability to evaluate RONA's capital structure and risk? Calculate RONA's debt-to-equity ratio on December 25, 2011 using only the amounts reflected in the balance sheet, and compare that amount with the ratio taking into consideration the off-balance-sheet amounts. Don't forget to discount the amounts where appropriate. Assume a discount rate of 15 percent.
Answer to relevant QuestionsRONA's cash position is significantly lower at the end of fiscal 2011 than the year before. Explain the reason for the decrease. Is this something you are concerned about? Explain. Why is RONA's cash from operations so much ...If you examine the cash flow statements of most public companies, you'll notice that depreciation appears in the calculation of cash from operations (these would be companies that use the indirect method of calculating cash ...Why is it important for stakeholders to be aware of an entity's liquidity? What are the consequences of not having adequate liquidity? Explain.What is the cash cycle? Describe the cash cycle for a wine maker.Managers often receive bonuses based on the net income of the entities they manage. Do you think it would be better to use cash from operations as a basis to award bonuses rather than net income? Explain your answer.
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