Refer to the consolidated financial statements and notes of Reitmans (Canada) Limited in Appendix A. Instructions (a)

Question:

Refer to the consolidated financial statements and notes of Reitmans (Canada) Limited in Appendix A.

Instructions

(a) Referring to Note 14, what was the long-term total debt (mortgage payable) reported by Reitmans in the schedule at January 28, 2012, and January 29, 2011? By how much has Reitmans' total debt increased (decreased) since January 29, 2011?

(b) Does Reitmans separate the current portion of its debt from its non-current debt? If so, how much of its debt is currently due? Where is the current portion of its long-term debt reported in Reitmans' balance sheet?

(d) What is the interest rate on Reitmans' long-term debt? When will the long-term debt be fully paid?

(e) What amount of the debt will be reported as a current liability in Reitmans' January 2013 balance sheet assuming that Reitmans does not borrow any additional debt?

(f) Does Reitmans have any off -balance sheet financing?

(g) Reitmans' debt to total assets and interest coverage ratios for fiscal 2012 were calculated in Illustrations 15-16 and 15-17, respectively, in the chapter. Calculate these ratios for fiscal 2011. Comment on whether Reitmans' solvency improved or worsened in 2012.

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