1. Calculate, to two decimal places, the companies' quick ratios using amounts reported in each of the...

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1. Calculate, to two decimal places, the companies' quick ratios using amounts reported in each of the financial statements for the 2013 fiscal year-end. What do the changes in this ratio suggest about the companies' ability to quickly pay their liabilities? Does it appear that Rona Inc. or The Home Depot is in a less secure position?
2. Calculate, to two decimal places, the companies' times interest earned ratios for the 2013 fiscal year end. Does it appear that Rona Inc. or The Home Depot will be better able to meet future interest obligations as they become payable?
Refer to the financial statements of Rona Inc. in Appendix A and The Home Depot's in Appendix B at the back of this book or download the annual reports from the Cases section of Connect.
Refer to Appendix A,
RONA INC.
CONSOLIDATED STATEMENTS OF INCOME
AND STATEMENTS OF OTHER COMPREHENSIVE INCOME
Years ended December, and December 29, 2013
(in thousands of Canadian dollars, except per share amounts)
CONSOLIDATED STATEMENTS OF INCOME 2013 2012 Restated (Notes 10 and 32) $4,444,175 Continuing operations Revenues (Note 4
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME 2013 2012 Restated (Notes 10 and 32) $ (153,014) $ 18,261 Net (los

The related notes form an integral part of these consolidated financial statements.
RONA
INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Years ended December 29, 2013 and December 30, 2012
(in thousands of Canadian dollars)

(a) Additional detail of share capital is provided in Note 23.
The related notes form an integral part of these consolidated financial statements.
RONA
INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 29, 2013 and December 30, 2012
(in thousands of Canadian dollars)

The related notes form an integral part of these consolidated financial statements.
RONA
INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
as at December 29, 2013, December 30, 2012 and December 26, 2011
(in thousands of Canadian dollars)

The related notes form an integral part of these consolidated financial statements.
On
behalf of the Board,
(s) Réal Brunet......................................... (s) Robert Chevrier
Réal Brunet............................................... Robert Chevrier
Chairman of the Audit Committee .................. Executive Chairman of the Board
Appendix B,
THE HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

See accompanying Notes to Consolidated Financial Statements.
THE
HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS

(1) Fiscal years ended February 2, 2014 and January 29, 2012 include 52 weeks. Fiscal year ended February 3, 2013 includes 53 weeks.
See accompanying Notes to Consolidated Financial Statements.
THE
HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS

(1) Fiscal years ended February 2, 2014 and January 29, 2012 include 52 weeks. Fiscal year ended February 3, 2013 includes 53 weeks.
See accompanying Notes to Consolidated Financial Statements.
THE
HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

See accompanying Notes to Consolidated Financial Statements.
THE
HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

(1) Fiscal years ended February 2, 2014 and January 29, 2012 include 52 weeks. Fiscal year ended February 3, 2013 includes 53 weeks.
See accompanying Notes to Consolidated Financial Statements.

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...
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Fundamentals of Financial Accounting

ISBN: 978-1259103292

4th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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