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Interpreting Ratios (P12-7) Leon's Furniture Limited is a leading Canadian full-line furniture retailer. The company sells home furnishings, major appliances, and home electronics through more

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Interpreting Ratios (P12-7) Leon's Furniture Limited is a leading Canadian full-line furniture retailer. The company sells home furnishings, major appliances, and home electronics through more than 300 company-owned and franchised stores across Canada. Its sales grew from \$289 million when it became a public company in 1996 to over $2.5 billion in 2021 . Leon's financial statements for 2020 and 2021 are shown on the next few pages. Required: 1. Examine Leon's statements of financial position. Identify the four largest changes in the carrying amount of assets, liabilities, and shareholders' equity between the two dates of the statements of financial position. What type of transactions could have caused the changes in the carrying amount of these items? 3. Using information from the company's statements of financial position and statement of earnings for 2021 , can you determine the amount of cash flow generated from operations? If not, where can you find such information? The company's notes to its financial statements indicate that depreciation of 5110,202 . and thut amortization of intant ble ancts is 51.810 LABILTES AND SHAREHOLDERS: EOUITY Liabllieles Current liablities \begin{tabular}{|c|c|c|} \hline & 2021 & 2020 \\ \hline Loans and borrowings & - & 90000 \\ \hline Comvertible debentures & - & 441 \\ \hline Lease Habilities & 291,334 & 327,227 \\ \hline Deferred wortanty plan revenue & 99.840 & 88,604 \\ \hline Redeemable share liability & 13 & 13 \\ \hline Deferred income tax liabilitios & 71,009 & 75,562 \\ \hline Total non-current liabillties & 462.196 & 581,847 \\ \hline Total liabillties & 1.661,940 & 1,402.586 \\ \hline \multicolumn{3}{|l|}{ Shareholders' equity } \\ \hline Common shares & 149,966 & 164,669 \\ \hline Equity component of convertibie debentures & - & 31 \\ \hline Retained earnings & 627,243 & 842,604 \\ \hline Accumulated other comprehensive income & 13,984 & 8.690 \\ \hline Total shareholders' equity & 791.193 & 1,016.003 \\ \hline Total liabilities and shareholders' equity & $2,453,133 & $2,418,589 \\ \hline & atermants. & \\ \hline \end{tabular} Soutce: Leon's Furnture Limated, Annual Report 2021

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