Refer to the 2016 and 2017 annual reports of Canadian Tire Corporation, Limited, available at SEDAR (www.sedar.com) or the company’s website (www.canadiantire.ca). Note that the company provides a 10-year financial review at the end of its 2016 annual report, but not in 2017. This summary gives relevant comparative information that is useful for determining trends and predicting the company’s future results and position.

Instructions

Prepare three graphs covering the 2012–2016 period. (Express all amounts for the first two graphs in millions of dollars.) The first graph is for net income over this five year period, the second for working capital, and the third for the current ratio. Based on the graphs, predict the values you might expect for the next fiscal period. Compare your predictions with actual results achieved in 2017 and comment on the usefulness of the graphs as a predictive tool.