Question

Excerpts from the 2013 financial statements of Gildan Activewear Inc. are in Exhibits11A to C.
In the questions below, the year 2013 refers to Gildan’s fiscal year ended September 29, 2013, and the year 2012 refers to the prior year ended September 30, 2012.
Required:
a. Find the following amounts in the statements:
i. Net sales in 2013
ii. Total selling, general, and administrative expenses in 2013
iii. Income tax expense (recovery) in 2012
iv. Net income (earnings) in 2013
v. Inventories at the beginning of 2013
vi. Trade accounts receivable at the end of 2012
vii. Retained earnings at the end of 2013
viii. Long-term debt at the end of 2012
ix. Cash flows from operating activities in 2013
x. Cash payments to acquire property, plant, and equipment in 2013
xi. Dividends paid in 2013
xii. Cash produced or used for investing activities in 2013
b. Did Gildan Activewear finance its business primarily from creditors (total liabilities) or from shareholders (shareholders’ equity) in 2013? Support your answer with appropriate calculations.
c. List the two largest sources of cash and the two largest uses of cash in 2013. (Consider operating activities to be a single source or use of cash.)
d. Did Gildan Activewear prepare a classified statement of financial position? How can you tell?
e. Calculate the difference between the current assets and current liabilities at the end of 2013, and at the end of 2012. This amount is referred to as working capital. Did the company’s working capital improve in 2013? Explain.


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  • CreatedJune 11, 2015
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