The financial statements of Shoppers Drug Mart are presented in Appendix A at the end of the

Question:

The financial statements of Shoppers Drug Mart are presented in Appendix A at the end of the book.

Instructions

(a) What types of current and non-current liabilities were reported in Shoppers' balance sheet at December 29, 2012?

(b) The company has cash reported in the current assets section, and bank indebtedness reported in the current liabilities section, of its balance sheet. Why doesn't the company just use the cash to pay off this liability?

(c) Shoppers issues commercial paper that usually falls due after 90 days and bears interest at a floating rate. Why would this company want to use that type of liability to finance its needs?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...