Go to Connect for the financial statements of RONA Inc. Required 1. What is the companys revenue

Question:

Go to Connect for the financial statements of RONA Inc.

Required

1. What is the company’s revenue recognition policy? (Hint: Look in the notes to the financial statements.)
2. How much inventory did the company buy during the year?

3. Refer to Note 5.1 to the financial statements and compute the ratio of Selling, general and administrative expenses to revenues for the years ended December 30, 2012, and December 25, 2011. By what percentage did these expenses increase or decrease from fiscal year 2011 to 2012?

4. Compute the company’s total asset turnover ratio for the year ended December 30, 2012, and explain its meaning.

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... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.