Access the consolidated financial statements for Dollarama Inc. for the year ended January 31, 2021, from the company’s website or from SEDAR (www.sedar.com). Refer to these statements to answer the following questions. 

Instructions 

a. Did Dollarama report any of the following in fiscal 2021: 

(1) Stock dividends or stock splits

(2) Other comprehensive income, or 

(3) Correction of prior period errors? 

b. Did Dollarama repurchase any shares in fiscal 2020 or 2021? If so, how much cash did it spend to reacquire the shares? 

c. Basic EPS for Dollarama was reported in the chapter in Illustration 14.23. Did EPS improve or weaken in 2021? Explain what may have caused the change.

d. Did Dollarama report any fully diluted EPS in fiscal 2021 and 2020? If yes, what was the difference between these amounts and the basic EPS for each year? 

e. Calculate Dollarama’s price-earnings ratio for 2021 and 2020. The share price on January 29, 2021, was $49.99 and on January 31, 2020, was $45.09. (Share prices are from the Friday before the yearend date). Did the price-earnings ratio improve or weaken in 2021? Is your answer consistent with your findings in part (c)? Explain. 

f. Dollarama’s payout ratio for 2021 was reported in the chapter in Illustration 14.24. Calculate its payout ratio for 2020. Explain what caused the difference between the two years.  

Data from illustration 14.23

Selected financial information for Dollarama Inc. 

Transcribed Image Text:

Net earnings Cash dividends declared Weighted average number of common shares Basic earnings per common share Cash dividends per share January 31, 2021 $564,348 $55,616 310,738 $1.82 $0.18 February 2, 2020 $564,039 $55,231 313,910 $1.80. $0.18