Refer to the financial statements of Canadian Tire Corporation and related notes given in Appendix A of

Question:

Refer to the financial statements of Canadian Tire Corporation and related notes given in Appendix A of this book.

Required:

1. What were the three largest adjustments to reconcile net earnings from operations to the net cash provided by operating activities? Explain the direction of the effect of each adjustment in the reconciliation.

2. What were Canadian Tire Corporation’s major uses of cash over the years 2011 and 2012? What were its major sources of cash for these activities?

3. What was the amount of free cash flow for the year ended December 29, 2012? What does this imply about the company’s financial flexibility?

4. Canadian Tire reported a large amount of cash and cash equivalents at December 29, 2012. What type of assets does the company consider as cash equivalents?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...