With corporate offices in Quebec, RONA Inc. operates approximately 800 stores of various sizes and format across Canada and is the largest Canadian distributor and retailer of hardware, renovation, and gardening products. Exhibit 11-10 presents the shareholders€™ equity section of the statement of financial position and excerpts from Note 23 to RONA€™s consolidated financial statements for 2013. All amounts are in thousands.

Required:
a. i. How many types of shares does RONA have authorized?
ii. What are the main differences in the types?
iii. Why would a company have different types of shares authorized?
b. Are there any preferred shares outstanding? If so, how many?
c. Compare the information included in the tables in Note 23 with a statement of changes in equity. How are the two tables similar? How are they different?
d. RONA Inc. had a net loss of $153,014 thousand for the year ended December 29, 2013, yet the company still declared dividends of $17,043 thousand on its common shares and $9,288 thousand on its preferred shares. How was it able to do this?

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KUBIT 12-20A EXCERPT FROM RONA INC. 2013 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS December 29, 2013 and December 30, 2012 (In thousands of dollars) Equity Share capital (Note 23) Retained earnings Contributed surplus Accumulated other comprehensive income Total equity attributable to owners of RONA inc. 2013 2012 765,203 879,415 12,972 (2.158) 1,655,432 $ 765,443 1,071,426 12,521 3,643) 1,845,747 EXHIBIT 11-10B EXCERPT FROM RONA INC. 2013 ANNUAL REPORT 23. Share capital Authorized Unlimited number of shares Common without par value Class A preferred shares, without par value, issuable in series Series 5, non-cumulative dividend equal to 70% of prime rate, redeemable at the Corporation's option at their issuance price Series 6, cumulative dividend of 5.25%, subject to approval by the Board of Directors, fixed for the first five years, redeemable at the Corporation's option at their issuance price Series 7, annual cumulative dividend at variable rate, redeemable at the Corporation's option at their issu- ance price Class B preferred shares, 6% non-cumulative dividend, redeemable at the Corporation's option at their par value of $1 each Class C preferred shares, issuable in series Series 1, non-cumulative dividend equal to 70% of prime rate, redeemable at the Corporation's option at their par value of $1,000 each Class D preferred shares, without par value, 4% cumulative dividend, redeemable at their issuance price over a maximum of ten years from the sixth anniversary of their date of issuance, on the basis of 10% per year. Issued and fully paid: The following tables present changes in the number of outstanding shares and their carrying amounts: Deposits on common Common shares Preferred sharesshare subscriptions l Share capital Amount shares Amount shares Amount shares Amount Balance, December 30, 2012- Restated (Note 32) Issuance of share capital 121,408,037 $590,763 6,900,000 $172,500 $2,180 128,308,037 $765,443 in exchange of cash Issuance of share capital 34,121 3,647 2,118 (1,177,300) (5,764) under stock option plans Issuance in exchange of common 279,900 3,647 share subscription deposits Repurchase of common 199,078 -(2,118) 199,078 shares for cancellation -1,177,300) (5,764) Deposits on common share Deposits on common share Balance, Decambar 29, 2013 -1,595 -1,595 120,743,836 $591,173 6,900,000 $172,500 -$1,530 127,643,836 $765,203 (a) Deposits on common share subscriptions represent amounts received during the year from affiliated and fran- chised merchants in accordance with commercial agreements. These deposits are exchanged for common shares on an annual basis. If the subscription deposits had been exchanged for common shares as at December 29 2013, the number of outstanding common shares would have increased by 117,084 (b) Class A preferred shares, Series 6 (Note 25)