Question:
The major
financial statements of Ten Peaks Coffee Company Inc. from its 2013 annual report are included in Exhibits 1-11A to C. Note that its fiscal year end is December 31, 2013.
Required:
a. Find the following amounts in the statements:
i. Total sales for fiscal year 2013
ii. Total cost of sales for fiscal year 2013
iii. Sales and marketing expenses for fiscal year 2012
iv. Finance expenses for fiscal year 2013
v. Income tax expense for fiscal year 2013
vi. Net income for fiscal year 2013
vii. Inventories at the end of fiscal year 2013
viii. Accounts payable at the beginning of fiscal year 2013
ix. Shareholders equity at the end of fiscal year 2013
x. Deficit at the beginning of fiscal year 2013
xi. Cash provided from operating activities in fiscal year 2013
xii. Cash payments to acquire plant and equipment in fiscal year 2013
xiii. Cash used in the repayment of debt in fiscal year 2013
xiv. Cash used to pay dividends in fiscal year 2013
b. Does Ten Peaks finance its business primarily with debt or with shareholders equity? Support your answer with appropriate data.
c. Did Ten Peaks have a net inflow or a net outflow of cash from financing activities in 2013? What about from its investing activities?
d. Does Ten Peaks use a classified statement of financial position? Explain.
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...
Transcribed Image Text:
TEN PEAKS COFFEE COMPANY INC.'S 2013 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION EXFIBIT 1-11A TEN PEAKS COFFEE COMPANY INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Tabular amounts in thousands of Canadian dollars, except per share and number of shares figures) December 31 2013 December 31 2012 Assets Current assets Inventories Accounts receivable Prepaid expenses and other receivables Derivative assets Cash S 6,463 4,972 236 152 2,594 14,417 S 9,494 3,962 169 227 1,304 Total current assets 15,156 Non-current assets Plant and equipment Intangible assets Deferred tax assets Derivative assets 12,508 2,465 1,578 13,298 2,724 2,058 37 18,117 Total non-current assets 16,551 Total assets $ 30,968 S 33,273 Liabilities and shareholders' equity Current liabilities S 4,786 916 1,100 S 6,983 1,559 1,066 Bank indebtedness Accounts payable Accrued liabilities Dividend payable Derivative liabilities Current income tax liabilities Current portion of other liabilities 18 219 Total current liabilities 7,575 10,036 Non-current liabilities Derivative liabilities Other liabilities Asset retirement obligation 131 28 725 884 8,459 69 705 774 10,810 Total non-current liabilities Total liabilities Shareholders' equity Share capital Share-based compensation reserve Deficit 24,631 106 (2,228) 22,509 $ 30,968 24,631 45 (2,213) 22,463 $ 33,273 Total equity Total iablitis and shareholders' equity TEN PEAKS COFFEE COMPANY INC.'S 2013 CONSOLIDATED STATEMENTS OF INCOME EXFUBIT 1-11B TEN PEAKS COFFEE COMPANY INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Tabular amounts in thousands of Canadian dollars, except per share and number of shares figures) for the vears ended December 31 2013 December 31 2012 Note $53,873 Revenue Cost of sales 59,713 55,050 6,211 (1,415) (50) (3,034) 92 (149) 1,614 (1,045) (68) Gross profit 4,663 Sales and marketing expenses Occupancy expenses Administration expenses Finance income inance expenses Realized gain on derivative financial instruments Unrealized loss on derivative financial instruments (Loss) gain on foreign exchange Loss on disposal of plant and equipment (1,292) (63) (2,847) (258) 1,678 (197) 223 Income before tax Income tax expense 2,152 (498) 2,024 (520) $1,504 Net income and comprehensive income for the year S 1,654 Earnings per share Basic and Diluted (per share) 20 $ 0.25 $0.23 TEN PEAKS COFFEE COMPANY INC.'S 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS EXHIT1-11C TEN PEAKS COFFEE COMPANY INC CONSOLIDATED STATEMENTS OF CASH FLOWS Tabular amounts in thousands of Canadian dollars, except per share and number of shares figures) for the vears ended December 31 2013 December 31 2012 Cash flows from operating activities 1,654 1,504 Net income for the period Items not affecting cash 1,415 1,045 4 238 (102) 315 498 (92) 149 5.124 1,396 197 Depreciation and amortization Unrealized loss on derivative financial instruments Loss on disposal of plant and equipment Share-based compensation Foreign exchange gain on cash held Foreign exchange loss on debt Income taxes recognized in profit and loss Finance income Finance expensesS 100 (149) 520 (117) 258 3,709 December 31 2013 December 31 2012 Movements in working capital: Accounts receivable Inventory Prepaid expenses Accounts payable and accrued liabilities Derivative assets at fair value through profit or loss Derivative liabilities at fair value through profit or loss S (1,010) 3,031 (67) (608) 112 $ 236 1,767 (10) (396) (16) Change in non-cash working capital relating to operating activities Cash generated from operations 652 5,776 92 (129) 5,739 1,266 4,975 Interest received Interest paid Net cash generated from operating activities 4,852 Cash flows from investing activities Additions to plant and equip Net cash used in investing activities 370 (370) (499) Cash flows from financing activities (1,669) (2,512) 181 102 1,290 1,304 2,594 (1,669) (2,029) 3,698) 149 804 500 $1,304 Dividends paid Repayments of bank indebtedness Net cash used in financing activities Effects of foreign exchange rate changes on cash held Net increase in cash Cash, beginning of period Cash, end of period