Excerpts from the 2016 financial statements of Gildan Activewear Inc. are in Exhibits 1.30A to 1.30C. In the questions below, the year 2016 refers to Gildan’s fiscal year ended January 1, 2017, and the year 2015 refers to the prior year ended January 3, 2016.

EXHIBIT 1.30A Gildan Activewear Inc.’s 2016 Consolidated Statements of Earnings

EXHIBIT 1.30B Gildan Activewear Inc.’s 2016 Consolidated Statements of Financial Position

EXHIBIT 1.30C Gildan Activewear Inc.’s 2016 Consolidated Statements of Cash Flows

Required

a. Find the following amounts in the statements:

i. Net sales in 2016

ii. Total selling, general, and administrative expenses in 2016

iii. Income tax expense in 2015

iv. Net income (earnings) in 2016

v. Inventories at the beginning of 2016

vi. Trade accounts receivable at the end of 2016

vii. Retained earnings at the end of 2016

viii. Long-term debt at the end of 2015

ix. Cash flows from operating activities in 2016

x. Cash payments to acquire property, plant, and equipment in 2016

xi. Dividends paid in 2016

xii. Cash produced or used for investing activities in 2015

b. Did Gildan Activewear finance its business primarily from creditors (total liabilities) or from shareholders (shareholders’ equity) in 2016? Support your answer with appropriate calculations.

c. List the two largest sources of cash and the two largest uses of cash in 2016. (Consider operating activities to be a single source or use of cash.)

d. Did Gildan Activewear prepare a classified statement of financial position? How can you tell?

e. Calculate the difference between the current assets and current liabilities at the end of 2016, and at the end of 2015. This amount is referred to as working capital. Did the company’s working capital improve in 2016? Explain.

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GILDAN ACTIVEWEAR INC. Consolidated Statements of Earnings Fiscal years ended January 1, 2017 and January 3, 2016 (in thousands of U.S. dollars) 2016 2015 (15 months) Net sales $2,585,070 $2,959,238 Cost of sales 1,865,367 2,229,130 Gross profit 719,703 730,108 Selling, general and administrative expenses (note 16(a)) 336,433 387,963 Restructuring and acquisition-related costs (note 17) 11,746 14,908 Operating income 371,524 327,237 Financial expenses, net (note 14(c)) 19,686 17,797 Earnings before income taxes 351,838 309,440 Income tax expense (note 18) Net earnings 5,200 4,526 346,638 304,914 Other comprehensive income (loss), net of related income taxes: Cash flow hedges (note 14(d) 39,518 8,825 Actuarial loss on employee benefit obligations (note 12(a)) (5,239) (10,000) 34,279 (1,175) $ 303,739 $ 380,917 Comprehensive income GILDAN ACTIVEWEAR INC. Consolidated Statements of Financial Position (in thousands of U.S. dollars) January 1, January 3, 2017 2016 Current assets: Cash and cash equivalents (note 6) $ 38,197 $ 50,675 Trade accounts receivable (note 7) 277,733 306,132 Inventories (note 8) 954,876 851,033 Prepaid expenses, deposits and other current assets 69,719 42,934 Assets held for sale 2,840 Total current assets 1,340,525 1,253,614 Non-current assets: Property, plant and equipment (note 9) 1,076,883 1,044,389 Intangible assets (note 10) 354,221 336,753 Goodwill (note 10) 202,108 190,626 Deferred income taxes (note 18) 1,500 2,793 Other non-current assets 14,907 6,105 January 1, January 3, 2017 2016 Total non-current assets 1,649,619 1,580,666 Total assets $2,990,144 $2,834,280 Current liabilities: Accounts payable and accrued liabilities $ 234,062 $ 232,268 Income taxes payable 1,866 953 Total current liabilities 235,928 233,221 Non-current liabilities: Long-term debt (note 11) 600,000 375,000 Other non-current liabilities (note 12) 34,569 37,616 Total non-current liabilities 634,569 412,616 Total liabilities 870,497 645,837 Commitments, guarantees and contingent liabilities (note 23) Equity: Share capital 152,313 150,497 Contributed surplus 23,198 14,007 Retained earnings 1,903,525 2,022,846 Accumulated other comprehensive income Total equity attributable to shareholders of the Company Total liabilities and equity 40,611 1,093 2,119,647 2,188,443 $2,990,144 $2,834,280