Canadian Tire Corporation, Limited's cash flow statement for the years ended December 31, 2011, and January 1, 2011, is reproduced below:

Required
1. Which format did Canadian Tire Corporation, Limited use for reporting cash flows from operating activities?
2. What was Canadian Tire's largest source of cash during the year ended December 31, 2011? During the previous year January 1, 2011?
3. What was Canadian Tire's largest use of cash during the year ended December 31, 2011? During the year ended January 1, 2011?
4. The operating activities section of the statement lists (in millions of dollars) "Changes in working capital and other, $219.6." This amount includes in part:
Trade and other receivables...................... $ (31.4)
Trade and other payables...............................242.1
Did these accounts' balances increase or decrease during the year ended December 31, 2011? How can you tell?
5. During the year ended December 31, 2011, Canadian Tire has a large negative cash flow from investing activities. Does this mean Canadian Tire is expanding, down-sizing, or remaining stable?
6. Why are Canadian Tire's year ends shown as December 31, 2011, and January 1, 2011?

Transcribed Image Text:

CANADIAN TIRE CORPORATION, LIMITED Consolidated Cash Flow Statement (adapted) For the Years Ended Dollars in millions Cash generated from (used for): December 31, 2011 January 1, 2011 Operating activities Net earnings Items not affecting cash $467.0 $ 444.2 347.0 223.8 142.6 135.7 50.3 (16.0) 10.3 1,337.9 (293.1) (190.5) Im pairment on loans receivable Depreciation of property and equipment Income tax expense Net finance costs Amortization of intangible assets Changes in fair value of derivative instruments Other 352.0 229.8 162.9 132.2 66.3 (7.0) 1,400.1 219.6 (176.6) 26.1 Cash generated from operation Changes in working capital and other Interest paid Interest received Income taxes paid (63.7) 131.5 729.5 1,405.5 Cash generated from operating activities Investing activities Acquisition of FGL Sports Acquisition of short-term investments Acquisition of long-term investments Additions to property and equipment Additions to intangible assets Long-term receivables and other assets Proceeds from the disposition of long-term investments Proceeds from the disposition of short-term investments Other (739.9) (334.8) (123.1) (230.5) (128.9) (3.2) 18.1 364.0 16.9 (1,161.4) (215.5) (70.5) (237.9) (70.4) 16.5 124.0 10.6 (443.2) Cash used for investing activities Financing activities Issuance of long-term debt Issuance of short-term borrowings Repaymen Issuance of loans payable Repayment of loans payable Issuance of share capital Repurchase of share capital Dividends paid Repayment of long-term debt 2,676.8 (2,666.7) 129.3 (187.6) 11.6 262.8 1,160.3 (1,222.7) 248.4 (318.8) 16.7 (25.4) (68.5) t of short-term borrowings Cash used for financing activities Cash used in the vear Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (89.6) (355.6) (690. (493. (638. (249.6) 450.6 $201.0 (351.7) 802.6 $450.9