Instructions From SEDAR (www.sedar.com), or the company websites, access the financial statements of Loblaw Companies Limited for

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Instructions
From SEDAR (www.sedar.com), 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) What businesses are the companies in?
(b) Compare how the two companies report cash and cash equivalents on the statement of financial position. What is included in the cash and cash equivalents of each and what are the amounts of these? Is any restricted cash reported by either company?
(c) What types of receivables do Loblaw and Empire have and what was the reported amount for each? How does each type of receivable arise? Which types are similar or different between the companies? How are the loans and receivables reported?
(d) Explain the type of credit risk that the companies have and how this risk is managed. What was the allowance for doubtful accounts at the end of year? What percentages of the accounts receivable were past due? How was the allowance for doubtful accounts determined for each company? How does the company test for impairment? What was the bad debts expense for the year? Is the allowance adequate?
(e) Does either company dispose of receivables before their due date to generate cash? Comment on how this is done and what the company has retained.
(f) Can an accounts receivable turnover ratio be determined for either company? Why or why not?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Intermediate Accounting

ISBN: 978-0176509736

10th Canadian Edition, Volume 1

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

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