Question: Dollarama reported the following selected data (in millions): Instructions (a) Calculate the debt to total assets and interest coverage ratios for 2015 and 2014. Did

Dollarama reported the following selected data (in millions):

Instructions
(a) Calculate the debt to total assets and interest coverage ratios for 2015 and 2014. Did Dollarama's solvency improve, worsen, or remain unchanged in 2015?
(b) The notes to Dollarama's financial statements show that the company has future operating lease commitments totalling $926.6 million. What is the significance of these unrecorded obligations when analyzing Dollarama's solvency?

2015 2014 Total assets Total liabilities Profit Income tax expense Interest expense $1,700.8 960.3 295.4 107.1 19.9 $1.566.8 702.6 250.0 92.7 11.6

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