Access the 2017 consolidated financial statements for Bell Canada Enterprises Inc. by going to the investor relations section of the companys website. Answer the questions below. Round percentages to one decimal point and other ratios to two decimal points. For each question, indicate where in the financial statements you found the answer and/ or provide a brief explanation.

Required

(a) What method was used to account for business combinations?

(b) Describe the most significant business acquisition during the year. Was it a purchase of net assets or shares?

(c) How much cash was paid for all business acquisitions during the year?

(d) With regard to the acquisition cost for the most significant business acquisition, what amounts were allocated to (i) intangible assets and (ii) goodwill?

(e) For the most significant business acquisition, describe the items comprising the goodwill and explain why these items were not reported as separate assets.

(f) Using vertical analysis, identify the percentage of total assets at the end of the year represented by (i) intangible assets and (ii) goodwill.

(g) Using horizontal analysis, identify the expense/loss item that shows the most significant change from the previous year.

(h) Assume that the company had paid 10% more for its most significant business acquisition and that the extra amount was paid in cash. How would this have affected the (i) current ratio and (ii) debt-to-equity ratio at the date of acquisition?