Refer to the consolidated financial statements and notes of Aritzia Inc. in Appendix A.

Instructions

a. Referring to Note 10, what was the long-term debt reported by Aritzia on February 25, 2018, and February 26, 2017? By how much has Aritzia’s total long-term debt increased (decreased) since February 26, 2017?

b. Determine whether Aritzia redeemed any long-term liabilities during the fiscal year ended February 25, 2018.

c. Aritzia’s debt to total assets and interest coverage ratios for fiscal 2018 were calculated in Illustrations 15.32 and 15.33, respectively, in the chapter. Calculate these ratios for fi scal 2017.

Comment on whether Aritzia’s solvency improved or worsened since 2017.