From SEDAR (, or the company websites, access the financial statements of Loblaw Companies Limited for its year ended December 31,2011, and of Empire Company Limited for its year ended May 5, 2012. Review the financial statements and answer the following questions.
(a) Describe the business that Loblaw and Empire operate in.
(b) "What is the amount of inventory reported by Loblaw at December 31, 201 1, and by Empire at May 5, 2012? "What percent of total assets is invested in inventory by each company? How does this compare with the previous year?
(c) Identify the inventory policies for each company that support the inventory values reported on their respective balance sheets.
(d) How much did each company report for inventory expenses in the current and previous year? "What was the writedown (or reversal of writedowns) related to inventories for the current and previous year for each company?
(e) How do the companies account for vendor allowances? Is this the appropriate treatment? How might this change if proposed changes in the framework are adopted?
(f) Calculate and compare the inventory turnover ratios and days to sell inventory for the two companies for the most current year.
(g) Comment on the results of your calculations in (f) above. Would any differences identified in any of the earlier analyses above help explain differences in the ratios between the two companies? "What might he some reasons for the differences between the two companies?

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