Aritzia Inc. is a retail company that designs and retails women’s fashions and accessories. Its first store was opened in 1984 in Vancouver by its founder, Brian Hill. Since then, it has expanded to more than 100 stores across North America. It also sells its goods online through its website, www.aritzia.com. Aritzia’s stock was first sold on the Toronto Stock Exchange in October 2016. 

Instructions 

a. Instead of selling shares on the Toronto Stock Exchange, Aritzia could have raised funds by operating as a partnership. What factors might have influenced its decision to form as a corporation? 

b. Look at Aritzia’s corporate financial statements reproduced in Appendix A at the back of this textbook. In what ways would partnership financial statements have been different from these corporate statements?

Data from Appendix A

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Cost Balance, February 25, 2018 Additions Transfers from construction-in-progress Dispositions Foreign exchange Balance, March 3, 2019 Additions Transfers from construction-in-progress Dispositions Foreign exchange Balance, March 1, 2020 Accumulated depreciation Balance, February 25, 2018 Depreciation Dispositions Foreign exchange Balance, March 3, 2019 Aritzia Inc. Excerpts from Notes to Consolidated Financial Statements March 1, 2020 and March 3, 2019 (in thousands of Canadian dollars, unless otherwise noted) 6. Property and equipment Depreciation Dispositions Foreign exchange Balance, March 1, 2020 Net carrying value Balance, March 1, 2020 Balance, March 3, 2019 Leasehold improvements 169,605 26,596 24,099 (15,011) 2,022 $207,311 26,723 2,771 (4,696) 990 $ 233,099 80,369 16,389. (15,011) 1,169 $ 82,916 21,462 (4,652) 419 $100,145 $ 132,954 $ 124,395 Furniture and equipment 38,214 9,085 6,216 (4,057) 407 $ 49,865 6,446 1,308 (1,249) 193 $ 56,563 21,816 4,677 (4,057) 442 $ 22,878 6,055 (1,246) 124 $ 27,811 $ 28,752 $ 26,987 Computer Computer hardware software 12,625 3,348 290 (1,011) 195 $15,447 2,543 332 (319) 36 $ 18,039 7.765 2,859 (1,011) 57 $ 9,670 3,055 (319) 29 $ 12,435 $ 5,604 $ 5,777 6,121 356 864 (240) (87) $ 7,014 338 6 (409) 5 $ 6,954 4,292 783 (240) 26 $ 4,861 826 (409) $ 5,282 $ 1,672 $ 2,153 Construction- in-progress 23,349 14,566 (31,469) 1,835 $ 8,281 11,707 (4,417) 84 $ 15,655 $ 15,655 $ 8,281 Total 249,914 53,951 (20,319) 4,372 $287,918 47,757 (6,673) 1,308 $ 330,310 114,242 24,708 (20,319) 1,694 $ 120,325 31,398 (6,626) 576 $ 145,673 $184,637 $167,593