This case, based on Gildan Activewear Inc.'s balance sheet in Appendix A at the end of this book and on MyAccountingLab, will familiarize you with some of the assets and liabilities of this actual company. Answer these questions, using the company's balance sheet and other information, as shown.

Required
1. Compare Gildan Activewear's balance sheet to the balance sheet in Exhibit 4-14 on page 204. What differences in style do you notice between these two balance sheets? Describe these differences.
2. What is the value of Gildan's total current assets in 2011? In 2010?
3. What is the value of the total current liabilities in 2011? In 2010?
4. Compute Gildan's current ratio at October 2, 2011, and at October 3, 2010. Did the ratio improve or deteriorate during the year?
5. Compute Gildan's debt ratio for the fiscal years ended 2011 and 2010. Did the ratio improve or deteriorate during the year?
6. What is the main purpose of the notes to the financial statements?

IVACO PRODUCTS COMPANY Balance Sheet June 30, 2014 Assets Current assets: $ 26,400 Cash Short-term investments 57,000 Accounts receivable 235,000 26,800 Interest receivable Current portion of note receivable Inventory Supplies Prepaid insurance Prepaid rent 51,600 847,800 5,200 24,600 27,000 $1,301,400 Total current assets Other assets: Note receivable 100,000 Less: Current portion of note receivable 51,600 48,400 Total other assets Other assets: Note receivable 100,000 Less: Current portion of note receivable 51,600 Total other assets 48,400 Property, plant, and equipment: Equipment $ 60,000 Less: accumulated amortization 18,000 42,000 Furniture and fixtures 70,000 Less: accumulated amortization 30,000 40,000 Buildings 240,000 Less: accumulated amortization 160,000 80,000 Land 70,000 Total property, plant, and equipment 232,000 Total assets $1,581,800