Financial statements of Gildan Activewear Inc. Excerpts from the 2020 financial statements of Gildan Activewear Inc. are in Exhibits 1.30A.

In the questions below, the year 2020 refers to Gildan’s fiscal year ended January 3, 2021, and the year 2019 refers to the prior year ended December 29, 2019.

Required 

a. Find the following amounts in the statements: 

i. Net sales in 2020 

ii. Gross profit in 2020 

iii. Total selling, general, and administrative expenses in 2019 

iv. Net earnings (loss) in 2020 

v. Inventories at the beginning of 2020 

vi. Trade accounts receivable at the end of 2020 

vii. Retained earnings at the end of 2020 

viii. Long-term debt at the end of 2019 

ix. Cash flows from operating activities in 2020 

x. Cash payments to acquire property, plant, and equipment in 2020 xi. Dividends paid in 2020
xii. Cash produced or used for investing activities in 2019 

b. Did Gildan Activewear finance its business primarily from creditors (total liabilities) or from shareholders (shareholders’ equity) in 2020? Support your answer with appropriate calculations. 

c. List the two largest sources of cash and the two largest uses of cash in 2020. (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 2020, and at the end of 2019. This amount is referred to as working capital. Did the company’s working capital improve in 2020? Explain.

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GILDAN ACTIVEWEAR INC. Consolidated Statements of Earnings and Comprehensive Income Fiscal years ended January 3, 2021 and December 29, 2019 (in thousands of U.S. dollars) Net sales (note 25) Cost of sales (note 16(c)) Gross profit Selling, general and administrative expenses (note 16(a)) Impairment of trade accounts receivable (note 6) Restructuring and acquisition-related costs (note 17) Impairment of goodwill and intangible assets Operating income (loss) Financial expenses, net (note 14(c)) Earnings (loss) before income taxes Income tax recovery (note 18) Net earnings (loss) Other comprehensive income (loss), net of related income taxes: Cash flow hedges (note 14(d)) Actuarial gain (loss) on employee benefit obligations (note 12(a)) Comprehensive income (loss) 2020 $1,981,276 1,732,217 249,059 272,306 15,453 48,154 93,989 (180,843) 48,530 (229,373) (4,091) (225,282) (8,503) 2019 $2,823,901 2,119,440 704,461 340,487 27,652 47,329 288,993 39,168 249,825 (9,984) 259,809 (3,917) 12,142 (1,296) 3,639 (5,213) $ (221,643) $ 254,596