Groupe Bikini Village Inc. (Bikini Village) operates 63 retail stores selling beach and travel clothing throughout Eastern Canada. Use their consolidated financial statements, presented in Exhibit 3-25, to answer the following questions.
In Exhibit 3-25
Statements of Operations and Comprehensive Loss
(in thousands of dollars, except per share amounts)

a. As at January 30, 2010 what is the cumulative amount of losses the company has incurred since incorporation?
b. Explain why it was not possible for the company to pay any dividends in the year ending January 30, 2010.
c. If the company continues to lose money at the same rate as in the most recent year, how long would it take for the shareholders' equity to be totally eliminated? Which users of the financial statements would be concerned with the decreasing shareholders' equity? Why?
d. Compare the net loss for the most recent year with the cash from operating activities. Explain how it is possible for the net income to be negative but the cash from operations to be positive. What kind of accounts or transactions would typically be included in the "Adjustments"?
e. During the year, the company purchased capital assets and intangible assets. Prepare the journal entries the company would have used to record each of those purchases, assuming they paid cash.
f. Assuming the amortization taken during the year was only related to the capital assets and not to the intangible assets; prepare the adjusting journal entry the company would have made to record the amortization expense for the year.

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Year ended January 30, 2010 January 31 2009 Restated Note 3 Operating activities Net Loss Adjustments (Note 16) (1,477) (440) 1.218 115 1,278 Net changes in non-cash working capital items (Note 16 Operating activities Financing activitics Purchase of share capital Issuance of convertible debentures Repayment of con Rental inducement Reimbursement of long-term debt Financing activities Investing activities Acquisition of capital assets Acquisition of intangible assets investing activities Net changes in cash Cash at Cash at end L,669 1,784 (506) (230) 2,000 525) 227 (231) 529) 208 (42) 1936 (1,518) (154) (1,672) 2.766) 488) (3,254) 1.824) (417) 4,346 3,929 6,170