Refer to the financial statements of Canadian Tire Corporation given in Appendix A at the end of

Question:

Refer to the of Canadian Tire given in Appendix A at the end of this book.
1. What method does the company use to determine the cost of its inventory?
2. Did the company write down its inventory at year- end? If so, what is the amount of the write- down?
3. Compute Canadian Tire’s for the year ended December 29, 2012. What does this ratio tell you?
4. If the company overstated by $ 10 million for the year ended December 29, 2012, what would be the correct value for earnings before income taxes? Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Ending Inventory
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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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...