Gildan Activewear Inc. is mainly in the business of manufacturing and selling active wear, socks, and underwear. Exhibits 9.14A and 9.14B contain the statements of financial position and statements of earnings and comprehensive income from Gildan’s 2016 annual report.

EXHIBIT 9.14A Gildan Activewear Inc.’s 2016 Consolidated Statements of Financial Position

GILDAN ACTIVEWEAR INC. 

Consolidated Statements of Financial Position 

(in thousands of U.S. dollars)

EXHIBIT 9.14B Gildan Activewear Inc.’s 2016 Consolidated Statements of Earnings and Comprehensive Income

GILDAN ACTIVEWEAR INC.

Consolidated Statements of Earnings

(in thousands of U.S. dollars)

Required

a. Calculate the company’s working capital for 2016 and 2015.

b. Calculate the current and quick ratios for 2016 and 2015 and comment on any trends you noticed.

c. Calculate the accounts payable turnover ratio and accounts payable payment period for the company.

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January 3, January 1, 2017 2016 Current assets: $ 38,197 Cash and cash equivalents (note 6) 50,675 Trade accounts receivable (note 7) 306,132 277,733 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 6,105 14,907 Total non-current assets 1,649,619 1,580,666 Total assets $2,990,144 $2,834,280 Current liabilities: $ 234,062 $ 232,268 Accounts payable and accrued liabilities Income taxes payable 1,866 953 Total current liabilities 235,928 233,221 Non-current liabilities: Long-term debt (note 11) 375,000 600,000 Other non-current liabilities (note 12) 34,569 37,616 Total non-current liabilities 634,569 412,616 Total liabilities 645,837 870,497 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 40,611 1,093 Total equity attributable to shareholders of the Company 2,119,647 2,188,443 Total liabilities and equity $2,990,144 $2,834,280 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) Operating income Financial expenses, net (note 14(c)) 11,746 14,908 371,524 327,237 19,686 17,797 Earnings before income taxes 351,838 309,440 Income tax expense (note 18) 5,200 4,526 Net earnings 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) (1,175) 34,279 $ 380,917 Comprehensive income $ 303,739 Earnings per share: (note 19) Basiç 1) $ 1.47 2$ 1.26 Diluted 1.47 1.26