Canadian Tire Corporation is a Canadian firm whose core operation is Canadian Tire, a retail and automotive services operation. Its head office is in Toronto, Ontario. The following T-accounts reflect information in the company's 2011 and 2012 balance sheets (in millions of Canadian dollars).

Required

a. Use the financial statement effects template to record Canadian Tire's purchases during fiscal 2012. Assume Canadian Tire incurred cost of goods sold of \$7,594 during 2012.

b. What amount did Canadian Tire pay in cash to its suppliers during fiscal 2012? Explain. Assume all inventory purchases are made on account, and that accounts payable reflects only inventory purchases.

c. Use the financial statement effects template to record cost of goods sold for fiscal 2012.

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Inventories 2011 Balance $1,449 2012 Balance $1,503 Accounts Payable $1,641 2011 Balance $1,631 2012 Balance