Refer to the financial statements of Aritzia Inc. and the Notes to the Financial Statements in Appendix

Question:

Refer to the financial statements of Aritzia Inc. and the Notes to the Financial Statements in Appendix A.

Instructions

Answer the following questions about the company’s current and contingent liabilities:

a. What were Aritzia’s total current liabilities at February 25, 2018? What was the increase (decrease) in total current liabilities from the previous year?

b. Which specific current liabilities and in what order did Aritzia present on the February 25, 2018, statement of financial statement position?

c. Calculate Aritzia’s current ratio, acid-test ratio, and turnover ratio for 2018 and 2017. Comment on Aritzia’s overall liquidity.

d. Does Aritzia report any contingencies? If so, where are they disclosed? Explain the nature, amount, and significance of Artizia’s commitments, if any.

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... Financial Statements
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...

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