Refer to the financial statements of Canadian Tire Corporation given in Appendix A at the end of this book.
1. What method does the company use to determine the cost of its inventory?
2. Did the company write down its inventory at year- end? If so, what is the amount of the write- down?
3. Compute Canadian Tire’s inventory turnover ratio for the year ended December 29, 2012. What does this ratio tell you?
4. If the company overstated ending inventory by $ 10 million for the year ended December 29, 2012, what would be the correct value for earnings before income taxes?

  • CreatedAugust 04, 2015
  • Files Included
Post your question