Use the information in Exhibit 9.12 to respond to the following questions: a. What amount of current
Question:
Use the information in Exhibit 9.12 to respond to the following questions:
a. What amount of current liabilities did Canadian Tire have on December 31, 2011 and January 1, 2011? What amount of non-current liabilities did it have?
b. How much did Canadian Tire report as trade and other payables December 31, 2011 and January 1, 2011? How much of that amount was classified as trade payables and accrued liabilities?
c. What was Canadian Tire's debt-to-equity ratio on December 31, 2011 and January 1, 2011? Interpret the ratios you calculated.
d. Which liabilities on Canadian Tire's balance sheet are valued at their present value?
e. What was Canadian Tire's interest coverage ratio for the years ended December 31, 2011 and January 1, 2011?
f. Calculate Canadian Tire's current and quick ratios on December 31, 2011 and January 1, 2011. What is your assessment of the company's liquidity? What other factors might you consider in assessing the company's liquidity?
g. What is Canadian Tire's cash from operations for fiscal 2011 and 2010? Why is cash from operations so different from net earnings?
h. What amount of long-term debt did Canadian Tire report on December 31, 2011 and January 1, 2011? What amount of the long-term debt was classified as current?
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...
Step by Step Answer:
a Current liabilities 2011 41530 2010 32515 Noncurrent liabilities 2011 37768 2010 37921 b Trade and other payables 2011 16409 2010 11799 Trade payabl...View the full answer
