Refer to the financial statements and the accompanying notes of Canadian Tire Corporation in Appendix A at the end of this book.

Required:

1. Is the company a corporation, a partnership, or a proprietorship? How do you know?

2. Use the company’s statement of financial position to determine the amounts in the accounting equation (A 5 L 1 SE).

3. The company shows on the statement of financial position that inventories are reported at $ 1,503.3 million. Does this amount represent the expected selling price? Why or why not?

4. What is the company’s fiscal year- end? Where did you find the exact date?

5. What are the company’s non- current liabilities?

6. Compute the company’s current ratio, and explain its meaning.

7. How much cash did the company spend on purchasing property, plant, and equipment each year (capital expenditures)? Where did you find the information?