The shareholders’ equity section for Aritzia Inc. is shown in the consolidated statement of financial position in Appendix A.

You will also find data related to this problem in the notes to the financial statements.

Instructions

a. How many classes of shares does Aritzia have? For each class of shares, specify how many shares are authorized and issued at February 25, 2018. (Hint: Refer to Note 12.)

b. Refer to Note 12 again. What are the rights of each class of shares that are currently issued and outstanding?

c. Did Aritzia issue any additional shares in fiscal 2018? If so, specify how many were issued, for what dollar amount, and for what purpose.

d. What was the average per share amount of each class of Aritzia’s shares at the end of fiscal 2018?

e. Aritzia did not declare any dividends in fiscal 2018. What are some reasons for not declaring dividends?

f. In fiscal 2017, Aritzia reported a net loss of $56,109,000 and in fiscal 2018, the company reported net income of $57,093,000. Refer to the consolidated statements of operations and identify revenues and expenses that explain the significant change in income.