Refer to the financial statements and the accompanying notes of Canadian Tire Corporation (Appendix A) and RONA Inc. (Connect) and the Industry Ratio Report (Appendix B) on Connect.

Required:

1. Which company is larger in terms of total assets?

2. Compute the current ratio for both companies. Compared to the industry average (from the Industry Ratio Report), are these two companies more or less able to satisfy short- term obligations with current assets? Explain.

3. In the most recent year, how much cash, if any, was spent buying back (repurchasing) each company’s own common shares?

4. How much did each company pay in dividends for the most recent year?

5. What account title does each company use to report any land, buildings, and equipment it may have?