Go to Connect for the financial statements of RONA Inc.
1. What is the balance of the prepaid expenses account at the end of the most recent year? Where did you find this information?
2. What is the difference between prepaid rent and deferred rent revenue?
3. Describe in general terms what accrued liabilities are.
4. What would generate the finance income that is reported in Note 25 to the financial statements?
5. Which company accounts would not have balances on a post- closing trial balance?
6. Give the closing entry, if any, for prepaid expenses.
7. What is the company’s earnings per share (basic only) for the two years reported?
8. Compute the company’s net profit margin ratio for the two years reported. What do the results suggest to you about RONA Inc.?