Exhibit 5-19 shows the consolidated statement of cash flows of Loblaw Companies Limited for the years ended
Question:
In Exhibit 5-19
Consolidated Cash Flow Statement
Required:
a. What was the percentage increase in Loblaw's net earnings before minority interest, and in its cash flows from operating activities, from 2008 to 2009? What is the main item that explains the different growth rates?
b. The change in non-cash working capital is a net figure for all the changes in the current asset and current liability accounts. As a large retailer, what do you think Loblaw's largest current asset and current liability would most likely be? Using those two accounts, explain what could have occurred to lead to the change in non-cash working capital amount in 2009.
c. Examine the investing activities section of the statement of cash flows and comment on the main differences between 2009 and 2008.
d. Examine the financing activities section of Loblaw's statement of cash flows and comment on the main differences between 2009 and 2008.
e. What was the company's balance of cash and cash equivalents at the end of 2007, at the end of 2008, and at the end of 2009?
f. Discuss Loblaw's ability to meet its need for cash during 2008 and 2009.
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...
Step by Step Answer:
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry