North West Company Inc. is a leading retailer to underserved rural communities and urban markets in Northern and Western Canada and internationally. Its stores off er a broad range of products and services with an emphasis on food. Exhibit 3.31 contains an excerpt from the company’s consolidated financial statements for the year ended January 31, 2017.

EXHIBIT 3.31 Excerpt from North West Company’s 2016 Financial Statements

(in thousands of dollars)

Net Income ....................................................................       79,508

Retained Earnings, opening balance ..........................     156,664

Dividends Declared ......................................................       60,169

Required

a. Determine the company’s ending retained earnings balance. Refer to Exhibit 3.31.

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

c. The company had accounts payable and accrued liabilities of $146,639 thousand at January 31, 2017. Identify two possible liabilities the company may have had as part of this balance. 

d. Based on the information below (given in thousands of dollars), determine the carrying value of the North West Company’s buildings and computer equipment. Comment on how old or new these capital assets are and how you determined this.

Transcribed Image Text:

Accumulated Depreciation $246,054 216,196 Cost Buildings Fixtures & equipment $442,041 309,155