Canada€™s largest film exhibition operator with theatres in ten provinces. An excerpt from its comparative balance sheet at December 31, 2014, shows the following assets and liabilities, in alphabetical order:

Required 

Part 1

a. Calculate total current assets at December 31, 2014, and December 31, 2013. 

b. Calculate total current liabilities at December 31, 2014, and December 31, 2013.
Part 2
c. Calculate the current ratio for December 31, 2014 and December 31, 2013 (round to two decimal places).
d. Explain the meaning of Cineplex€™s current ratio results calculated in part (c). Also indicate whether the change in the ratio was favourable or unfavourable.

Transcribed Image Text:

(thousands of dollars) 2014 2013 Accounts payable and accrued expenses. $157,333 $159,152 44,140 Cash and cash equivalents. 34,367 ..... Deferred revenue (unearned revenue) 149,644 136,373 Dividends payable to be paid in 2015.. Income taxes payable 7,877 7,552 9,735 2,656 Intangible assets 109,746 113,601 Inventories... 7,978 7,234 Long-term debt.. . 229,754 217,151 Other current liabilities ... 9,522 15,180 Other non-current assets ... 852,229 859,562 306,861 Other non-current liabilities .... 311,883 6,838 Prepaid expenses and other current assets.... 8,102 Property, equipment and leaseholds ... 495,532 459,112 Trade and other receivables 101,462 100,891