Refer to the financial statements of Canadian Tire Corporation in Appendix A at the end of this book.

Required:

Look at the statement of earnings, statement of financial position, and statement of cash flows closely and attempt to infer the types of information they report. Then answer the following questions based on the report.

1. On what day of the year does Canadian Tire’s fiscal year end?

2. For how many years does it present complete

a. Statements of financial position (balance sheets)?

b. Statements of earnings ( or income)?

c. Statements of cash flows?

3. Are its financial statements audited by independent accountants? How do you know?

4. Did its total assets increase or decrease over the last year?

5. What was the balance of merchandise inventories at the end of the most current year?

6. Write out its basic accounting equation in Canadian dollars at year-end.