Dollarama reported the following selected data (in millions): Instructions (a) Calculate the debt to total assets and

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Dollarama reported the following selected data (in millions):

Instructions
(a) Calculate the debt to total assets and interest coverage ratios for 2015 and 2014. Did Dollarama's solvency improve, worsen, or remain unchanged in 2015?
(b) The notes to Dollarama's financial statements show that the company has future operating lease commitments totalling $926.6 million. What is the significance of these unrecorded obligations when analyzing Dollarama's solvency?

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... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...

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Accounting Principles

ISBN: 978-1119048473

7th Canadian Edition Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Question Posted: May 17, 2017 09:09 AM

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Dollarama reported the following selected data (in millions): Instructions (a) Calculate the debt to total assets and

Question:

2015 2014 Total assets Total liabilities Profit Income tax expense Interest expense $1,700.8 960.3 295.4 107.1 19.9 $1.566.8 702.6 250.0 92.7 11.6

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a dollar figures in millions 9603 565 17008 2015 Debt to total assets 2954 199 1071 212 times ...View the full answer

Accounting Principles

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