You have been given the opportunity to assist the board members of a charitable organization with their

Question:

You have been given the opportunity to assist the board members of a charitable organization with their decision to invest excess funds into either Reitmans (Canada) Limited or Danier Leather Inc., which are both clothing retailers. A number of factors have already been considered and the final decision will be based on an assessment of the ratios calculated below.

Required
Compare and evaluate the ratios, preparing brief comments that you will share with the board members of the charitable organization.
Analysis Component: Go to www.sedar.com and find the audited financial statements for Reitmans (Canada) Limited and Danier Leather Inc. 2011. Calculate the 2011 profit margin for each company. How do the results of this calculation affect your evaluationabove?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...