This case, based on Aritzia’s 2020 Annual Report, will familiarize you with some of the assets and liabilities of this company. Answer these questions, using the company’s balance sheet.

Required1. Compare Aritzia’s balance sheet to the balance sheet in Exhibit 4–11. What differences in style do you notice between these two balance sheets? Describe these differences.

2. What was the value of Aritzia’s total current assets in 2021? In 2020?

3. What was the value of the total current liabilities in 2021? In 2020?

4. Compute Aritzia’s current ratio at February 28, 2021, and at March 1, 2020. Did the ratio improve or deteriorate during the year? 

5. Compute Aritzia’s debt ratio for the fiscal years ended 2021 and 2020. Did the ratio improve or deteriorate during the year?

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EXHIBIT 4-11 | Classified Balance Sheet of CAM Company in Report Format CAM COMPANY Balance Sheet June 30, 2022 Assets Current assets Cash Short-term investments Accounts receivable Interest receivable Current portion of note receivable Inventory Supplies Prepaid insurance Total current assets Long-term investments Note receivable Less: Current portion of note receivable Total long-term investments $ 26,400 57,000 235,000 26,800 51,600 847,800 5,200 27,000 100,000 51,600 $1,276,800 48,400