Refer to the 2013 financial statements for Canadian Tire Corporation in Appendix D . Required: a. What

Question:

Refer to the 2013 financial statements for Canadian Tire Corporation in Appendix D .

Required:
a. What amount of intangible assets and goodwill did the company report on its December 28, 2013 balance sheet? What was the composition of this amount? Break it into the component parts as identified by the company and provide totals for finite life intangibles, indefinite life intangibles other than goodwill, and goodwill. What percentage of total assets did intangible assets and goodwill represent?
b. Using Canadian Tire’s financial statements, and assuming nil residual values, estimate the average remaining useful life of the company’s software and other finite intangibles at the end of 2013.
c. Refer to Note 7 of the financial statements. During 2013, Canadian Tire paid $58.0 million to acquire Pro Life Sporting Goods Inc. and agreed to pay $32.8 million to purchase various franchise operations. How much of the combined purchase price of these acquisitions was attributed to intangible assets including goodwill? What was the amount allocated to each intangible category?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... 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...

Fantastic news! We've Found the answer you've been seeking!