Use the Canadian Tire's financial statements in Appendix A to address the following questions.
Requirements
1. During fiscal 2014, Canadian Tire's net income increased over 2013. Prepare a common-size income statement for 2014 and 2013.
2. Discuss the results of Canadian Tire based on the common-size income statement.
3. In the Management Discussion and Analysis (MD&A), management is forecasting an annualized retail sales growth of 31 percent at Canadian Tire; 51 percent at Mark's and 91 percent at FGL Sports. Given the common-size income statement prepared in Requirement 1 and the forecast management made in the MD&A, what is the company's outlook for the future?