Business
Fundamental Accounting Principles
New Look Vision Group Inc. manufactures and retails eye care

New Look Vision Group Inc. manufactures and retails eye care products. The company operates company stores under

Question:

New Look Vision Group Inc. manufactures and retails eye care products. The company operates company stores under three banners: New Look Eyewear, Vogue Optical, and Greiche & Scaff . Selected information from New Look?s comparative balance sheet follows:

3. Cash provided by operating activities during the year ended February 25, 2018 (from statement of cash flows).

b. What conclusions concerning the management of cash can you draw from these data?

Instructions

a. Calculate (1) working capital and (2) the current ratio for each year. Comment on your results.

b. Should the inventory be included in an acid-test ratio calculation? Why or why not?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Transcribed Image Text:

NEW LOOK VISION GROUP INC. Consolidated Balance Sheet (partial) December 30 (in thousands of Canadian dollars) Dec. 30, 2017 Dec. 31, 2016 Current assets Cash $13,647 $ 6,594 Receivables 3,448 7,857 1,313 7,587 Income tax receivable Loans and advances 343 Inventories 29,442 17,966 Prepaid expenses Total current assets 1,911 825 $61,757 $29,176 Total current liabilities $57,277 $30,408

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Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

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

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Question Posted: Mar 04, 2020 12:57 PM

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