CURRENT ASSETS Cash CONSOLIDATED BALANCE SHEETS ($ in thousands) Accounts receivable (Note 5) Inventories (Note 6)...

 

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CURRENT ASSETS Cash CONSOLIDATED BALANCE SHEETS ($ in thousands) Accounts receivable (Note 5) Inventories (Note 6) Prepaid expenses NON-CURRENT ASSETS Property and equipment (Note 7) Goodwill (Note 8) Intangible assets (Note 8) Deferred tax assets (Note 9) Other assets (Note 10) TOTAL ASSETS CURRENT LIABILITIES Accounts payable and accrued liabilities Current portion of long-term debt (Note 11) Income tax payable (Note 9) NON-CURRENT LIABILITIES Long-term debt (Note 11) Defined benefit plan obligation (Note 12) Deferred tax liabilities (Note 9) Other long-term liabilities TOTAL LIABILITIES SHAREHOLDERS' EQUITY Share capital (Note 15) Contributed surplus Retained earnings Accumulated other comprehensive income Equity attributable to The North West Company Inc. Non-controlling interests TOTAL EQUITY TOTAL LIABILITIES & EQUITY See accompanying notes to consolidated financial statements. January 31, 2019 January 31, 2018 $ 38,448 90,323 236,317 11,741 376,829 514,946 45,203 39,199 32,909 13,835 646,092 $1,022,921 $ 175,726 900 255 176,881 365,857 28,969 9,007 21,103 424,936 601,817 173,681 3,530 211,191 20,132 408,534 12,570 421,104 $1,022,921 $ 25,160 80,765 222,072 7,006 335,003 469,993 41,231 37,628 34,450 12,643 595,945 $930,948 $170,166 1,046 171,212 313,549 34,095 6,468 23,468 377,580 548,792 172,619 2,570 181,844 12,918 369,951 12,205 382,156 $930,948 SALES Cost of sales Gross profit Selling, operating and administrative expenses (Notes 16, 17) Earnings from operations Interest expense (Note 18) Earnings before income taxes Income taxes (Note 9) NET EARNINGS FOR THE YEAR NET EARNINGS ATTRIBUTABLE TO The North West Company Inc. Non-controlling interests TOTAL NET EARNINGS NET EARNINGS PER SHARE (Note 20) Basic Diluted CONSOLIDATED STATEMENTS OF EARNINGS ($ in thousands, except per share amounts) Year Ended January 31, 2019 Year Ended January 31, 2018.(1) $ 1,985,122 (1,360,381) WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING (000's) Basic Diluted (1) Certain prior period figures have been reclassified as described in Note 3. See accompanying notes to consolidated financial statements. $ 2,013,486 (1,372,943) 640,543 (510,635) 129,908 (13,965) 115,943 (25,311) $ 90,632 $ 86,748 3,884 $ 90,632 $ 1.78 $1.77 48,697 49,144 624,741 (510,770) 113,971 (10,145) 103,826 (34,135) $ 69,691 $ 67,154 2,537 $ 69,691 $ 1.38 $ 1.36 48,680 49,275 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ($ in thousands) NET EARNINGS FOR THE YEAR Other comprehensive income/(loss), net of tax: Items that may be reclassified to net earnings: Exchange differences on translation of foreign controlled subsidiaries Items that will not be subsequently reclassified to net earnings: Remeasurements of defined benefit plans (Note 12) Remeasurements of defined benefit plan of equity investee Total other comprehensive income/(loss), net of tax COMPREHENSIVE INCOME FOR THE YEAR OTHER COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO The North West Company Inc. Non-controlling interests TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) COMPREHENSIVE INCOME ATTRIBUTABLE TO The North West Company Inc. Non-controlling interests TOTAL COMPREHENSIVE INCOME See accompanying notes to consolidated financial statements. Year Ended January 31, 2019 Year Ended January 31, 2018 $ 90,632 $69,691 8,049 4,952 (24) 12,977 $103,609 $ 12,142 835 $ 12,977 $ 98,890 4,719 $103,609 (7,934) 1,175 (173) (6,932) $62,759 $(6,932) $(6,932) $60,222 2,537 $62,759 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ($ in thousands) Balance at January 31, 2018 Net earnings for the year Other comprehensive income Other comprehensive income/(loss) of equity investee Comprehensive income Acquisition non-controlling interests Equity settled share-based payments (Note 13) Dividends (Note 19) Issuance of common shares (Note 15) Balance at January 31, 2019 Balance at January 31, 2017 Net earnings for the year Other comprehensive income/(loss) Other comprehensive income/(loss) of equity investee Comprehensive income Acquisition of subsidiary with non-controlling interest (Note 24) Equity settled share-based payments (Note 13) Dividends (Note 19) Issuance of common shares (Note 15) Balance at January 31, 2018 (1) Accumulated Other Comprehensive Income See accompanying notes to consolidated financial statements. Share Capital Contributed Surplus Retained Earnings AOCI(1) Total Non-Controlling Interests $172,619 $ 2,570 $12,205 $181,844 $12,918 $369,951 86,748 86,748 12,166 (24) 98,890 1,062 1,062 $173,681 $ 168,283 4,336 4.336 $172,619 2,022 (1,062) 960 $3,530 $ 2,647 259 (336) (77) $ 2,570 4,952 7,214 (24) 91,676 (62,329) 7,214 (62,315) - (62,329) (60,307) $211,191 $20,132 $408,534 $176,003 $20,852 $367,785 67,154 67,154 1,175 (7,934) (6,759) (173) (173) 68,156 (7,934) 60,222 - - - (62,315) $181,844 $12,918 2,022 (62,329) 259 (62,315) 4,000 (58,056) $369,951 3,884 835 4,719 (400) (3,954) (4,354) $12,570 $- 2,537 2,537 12,150 (2,482) 9,668 $12,205 Total Equity $382,156 90,632 13,001 (24) 103,609 (400) 2,022 (66,283) (64,661) $421,104 $367,785 69,691 (6,759) (173) 62,759 12,150 259 (64,797) 4,000 (48,388) $382,156 15. Share Capital Authorized - The Company has an unlimited number of Common Voting Shares and Variable Voting Shares. Balance at January 31, 2018 Issued under option plans (Note 13) Balance at January 31, 2019 Balance at January 31, 2017 Issued for acquisition of RTW (Note 24) Issued under option plans (Note 13) Balance at January 31, 2018 Shares Consideration 48,690,212 60,717 48,750,929 48,542,514 133,944 13,754 48,690,212 $172,619 1,062 $173,681 $168,283 4,000 336 $172,619 Question 1 The financial statements of The North West Company Inc. are provided a. Using the statement of earnings (statement of income), answer the following questions: 1. What amount did the company report as basic earnings per share for the years ending January 31, 2019 and 2018? 2. What was its weighted average number of shares for each year? b. Review Note 15: Share Capital and answer the following questions: 1. How many common shares and preferred shares has the company authorized? 2. How many common shares had been issued on January 31, 2019 and 2018? How does the number of issued shares compare with the weighted average number of shares determined in part (a) (2) above? 3. On average, what amount did the company receive for each common share that it has issued as at January 1, 2019? c. Using the statement of chlanges in shareholders' equity, answer the following questions: 1. Did North West report other comprehensive income or loss for the years ended January 31, 2019 and 2018? If so, how much? 2. Did the company declare any dividends for the years ended January 31, 2019 and 2018? If so, how much? CURRENT ASSETS Cash CONSOLIDATED BALANCE SHEETS ($ in thousands) Accounts receivable (Note 5) Inventories (Note 6) Prepaid expenses NON-CURRENT ASSETS Property and equipment (Note 7) Goodwill (Note 8) Intangible assets (Note 8) Deferred tax assets (Note 9) Other assets (Note 10) TOTAL ASSETS CURRENT LIABILITIES Accounts payable and accrued liabilities Current portion of long-term debt (Note 11) Income tax payable (Note 9) NON-CURRENT LIABILITIES Long-term debt (Note 11) Defined benefit plan obligation (Note 12) Deferred tax liabilities (Note 9) Other long-term liabilities TOTAL LIABILITIES SHAREHOLDERS' EQUITY Share capital (Note 15) Contributed surplus Retained earnings Accumulated other comprehensive income Equity attributable to The North West Company Inc. Non-controlling interests TOTAL EQUITY TOTAL LIABILITIES & EQUITY See accompanying notes to consolidated financial statements. January 31, 2019 January 31, 2018 $ 38,448 90,323 236,317 11,741 376,829 514,946 45,203 39,199 32,909 13,835 646,092 $1,022,921 $ 175,726 900 255 176,881 365,857 28,969 9,007 21,103 424,936 601,817 173,681 3,530 211,191 20,132 408,534 12,570 421,104 $1,022,921 $ 25,160 80,765 222,072 7,006 335,003 469,993 41,231 37,628 34,450 12,643 595,945 $930,948 $170,166 1,046 171,212 313,549 34,095 6,468 23,468 377,580 548,792 172,619 2,570 181,844 12,918 369,951 12,205 382,156 $930,948 SALES Cost of sales Gross profit Selling, operating and administrative expenses (Notes 16, 17) Earnings from operations Interest expense (Note 18) Earnings before income taxes Income taxes (Note 9) NET EARNINGS FOR THE YEAR NET EARNINGS ATTRIBUTABLE TO The North West Company Inc. Non-controlling interests TOTAL NET EARNINGS NET EARNINGS PER SHARE (Note 20) Basic Diluted CONSOLIDATED STATEMENTS OF EARNINGS ($ in thousands, except per share amounts) Year Ended January 31, 2019 Year Ended January 31, 2018.(1) $ 1,985,122 (1,360,381) WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING (000's) Basic Diluted (1) Certain prior period figures have been reclassified as described in Note 3. See accompanying notes to consolidated financial statements. $ 2,013,486 (1,372,943) 640,543 (510,635) 129,908 (13,965) 115,943 (25,311) $ 90,632 $ 86,748 3,884 $ 90,632 $ 1.78 $1.77 48,697 49,144 624,741 (510,770) 113,971 (10,145) 103,826 (34,135) $ 69,691 $ 67,154 2,537 $ 69,691 $ 1.38 $ 1.36 48,680 49,275 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ($ in thousands) NET EARNINGS FOR THE YEAR Other comprehensive income/(loss), net of tax: Items that may be reclassified to net earnings: Exchange differences on translation of foreign controlled subsidiaries Items that will not be subsequently reclassified to net earnings: Remeasurements of defined benefit plans (Note 12) Remeasurements of defined benefit plan of equity investee Total other comprehensive income/(loss), net of tax COMPREHENSIVE INCOME FOR THE YEAR OTHER COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO The North West Company Inc. Non-controlling interests TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) COMPREHENSIVE INCOME ATTRIBUTABLE TO The North West Company Inc. Non-controlling interests TOTAL COMPREHENSIVE INCOME See accompanying notes to consolidated financial statements. Year Ended January 31, 2019 Year Ended January 31, 2018 $ 90,632 $69,691 8,049 4,952 (24) 12,977 $103,609 $ 12,142 835 $ 12,977 $ 98,890 4,719 $103,609 (7,934) 1,175 (173) (6,932) $62,759 $(6,932) $(6,932) $60,222 2,537 $62,759 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ($ in thousands) Balance at January 31, 2018 Net earnings for the year Other comprehensive income Other comprehensive income/(loss) of equity investee Comprehensive income Acquisition non-controlling interests Equity settled share-based payments (Note 13) Dividends (Note 19) Issuance of common shares (Note 15) Balance at January 31, 2019 Balance at January 31, 2017 Net earnings for the year Other comprehensive income/(loss) Other comprehensive income/(loss) of equity investee Comprehensive income Acquisition of subsidiary with non-controlling interest (Note 24) Equity settled share-based payments (Note 13) Dividends (Note 19) Issuance of common shares (Note 15) Balance at January 31, 2018 (1) Accumulated Other Comprehensive Income See accompanying notes to consolidated financial statements. Share Capital Contributed Surplus Retained Earnings AOCI(1) Total Non-Controlling Interests $172,619 $ 2,570 $12,205 $181,844 $12,918 $369,951 86,748 86,748 12,166 (24) 98,890 1,062 1,062 $173,681 $ 168,283 4,336 4.336 $172,619 2,022 (1,062) 960 $3,530 $ 2,647 259 (336) (77) $ 2,570 4,952 7,214 (24) 91,676 (62,329) 7,214 (62,315) - (62,329) (60,307) $211,191 $20,132 $408,534 $176,003 $20,852 $367,785 67,154 67,154 1,175 (7,934) (6,759) (173) (173) 68,156 (7,934) 60,222 - - - (62,315) $181,844 $12,918 2,022 (62,329) 259 (62,315) 4,000 (58,056) $369,951 3,884 835 4,719 (400) (3,954) (4,354) $12,570 $- 2,537 2,537 12,150 (2,482) 9,668 $12,205 Total Equity $382,156 90,632 13,001 (24) 103,609 (400) 2,022 (66,283) (64,661) $421,104 $367,785 69,691 (6,759) (173) 62,759 12,150 259 (64,797) 4,000 (48,388) $382,156 15. Share Capital Authorized - The Company has an unlimited number of Common Voting Shares and Variable Voting Shares. Balance at January 31, 2018 Issued under option plans (Note 13) Balance at January 31, 2019 Balance at January 31, 2017 Issued for acquisition of RTW (Note 24) Issued under option plans (Note 13) Balance at January 31, 2018 Shares Consideration 48,690,212 60,717 48,750,929 48,542,514 133,944 13,754 48,690,212 $172,619 1,062 $173,681 $168,283 4,000 336 $172,619 Question 1 The financial statements of The North West Company Inc. are provided a. Using the statement of earnings (statement of income), answer the following questions: 1. What amount did the company report as basic earnings per share for the years ending January 31, 2019 and 2018? 2. What was its weighted average number of shares for each year? b. Review Note 15: Share Capital and answer the following questions: 1. How many common shares and preferred shares has the company authorized? 2. How many common shares had been issued on January 31, 2019 and 2018? How does the number of issued shares compare with the weighted average number of shares determined in part (a) (2) above? 3. On average, what amount did the company receive for each common share that it has issued as at January 1, 2019? c. Using the statement of chlanges in shareholders' equity, answer the following questions: 1. Did North West report other comprehensive income or loss for the years ended January 31, 2019 and 2018? If so, how much? 2. Did the company declare any dividends for the years ended January 31, 2019 and 2018? If so, how much?

Answer rating: 100% (QA)

a Using the statement of earnings statement of income Basic earnings per share 2019 178SeeCONSOLIDAT... View the full answer