The consolidated statements of cash flows and related note disclosure for Canada Goose Holdings Inc. are in Exhibits 5.23B and. Canada Goose designs, manufactures, and sells luxury apparel, including parkas, down jackets, and footwear.

Required 

a. In total, how much did Canada Goose’s cash change during 2020? Was this an increase or a decrease? How did this compare with the previous two years? 

b. Did Canada Goose have net income or a net loss in 2020? How did this compare with the cash flows from operating activities? What was the largest difference between these two amounts? 

c. What effect did the change in the company’s trade receivables have on cash flows from operating activities in 2020? What does this tell you about the balance owed by the company’s customers?

d. Did the company’s inventory balance increase or decrease during 2020? How does this compare with 2019 and 2018? How did the change in inventory in 2020 compare with the change in accounts payable for the same period? What does this tell you about whether or not the company’s suppliers are helping to finance these changes in inventory balances? 

e. Calculate Canada Goose’s net free cash flow for 2020, 2019 and 2018. Is the trend positive or negative? 

f. Assuming that the net free cash flow determine in part (e) continued in 2021, comment on whether Canada Goose would have sufficient net free cash flow to finance the purchase of property, plant, and equipment and share repurchases if these activities continued at the same level as in 2020.
g. Canada Goose had current liabilities of $201.3 million at the end of 2020 and $136.6 million at the end of 2019. Calculate Canada Goose’s operating cash flow ratio for 2020. How did this compare with the cash flow ratio for 2019?

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CANADA GOOSE HOLDINGS INC. Notes to the Consolidated Financial Statements March 29, 2020 (in millions of Canadian dollars, except share and per share data) Note 23. Selected cash flow information Changes in non-cash operating items Trade receivables Inventories Other current assets Accounts payable and accrued liabilities Provisions Deferred rent Other Change in non-cash operating items March 29, 2020 $ (10.6) (141.8) 6.1 (1.3) 14.5 - 2.5 $(130.6) March 31, 2019 $ 3.4 (87.3) (10.3) (14.7) 5.6 3.3 (0.7) $(100.7) March 31, 2018 $ (3.1) (39.5) (5.6) 41.5 1.6 2.3 0.5 $ (2.3)