Big Rock Brewery Inc. is a regional producer of premium craft beers and cider, which are sold

Question:

Big Rock Brewery Inc. is a regional producer of premium craft beers and cider, which are sold across Canada. Exhibit 3.32 contains an excerpt from the company’s consolidated financial statements for the year ended December 30, 2016.

EXHIBIT 3.32 Excerpt from Big Rock’s 2016 Financial Statements
(in thousands of Canadian dollars)
Net Income .............................................................. (453)
Deficit, Opening Balance ........................................ (76,836)
Dividends Declared ................................................ Quarterly dividend suspended in March 20

Required

a. Determine the company’s Retained Earnings (Defi cit) balance using the information from Exhibit 3.32.

b. Identify three things that we know about the company because it has an opening deficit balance.

c. The company had $127,000 in prepaid insurance premiums and property taxes at December 30, 2016. Which financial statement would this be presented on? When would the insurance premiums be expensed? When would the prepaid property taxes be expensed?

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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