Dollarama Inc. is Canada’s largest operator of dollar stores, with more than 800 stores and operations across the country. The company’s headquarters, distribution centre, and warehouses are located in Montreal, Quebec. Exhibit 4-19A presents the company’s consolidated statement of net earnings and comprehensive income for the years ended February 2, 2014, and February 3, 2013. Exhibit 4-19B is an extract from the notes to the company’s financial statements presenting expenses by nature.
a. Calculate Dollarama’s gross profit percentage for 2014 and 2013. Has it improved? What does this figure tell us about each $1-priced item on Dollarama’s shelves?
b. Dollarama presents its expenses by function and then discloses depreciation, employee benefits, and financing costs in a note to its financial statements. Comment on why this additional expense information is useful or relevant to users of the company’s financial statements.
c. Identify other expenses not currently disclosed by nature that might be relevant to users of the company’s financial statements.

  • CreatedJune 11, 2015
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