Q$1$: Exhibit A shows the statement of financial position of XYZ Ltd$.$ on December $31,2023.$

Note that the company has a December $31$ year end and that these balances will be opening

balances for the company$$s accounts on January $1,2024.$

Exhibit A; XYZ Ltd$.$s Statement of Financial Position ASSETS

Current assets

Cash $$4,500$

Accounts receivable $2,500$

Inventory $7,500$

Prepaid rent $1,000$

$$15,500$

Non$-$current assets

Equipment $9,500$

TOTAL ASSETS $$25,000$

LIABILITIES

Current liabilities

Accounts payable $$3,100$

Wages payable $1,300$

Non$-$current liabilities

Bank loan payable $3,500$

TOTAL LIABILITIES $7,900$

SHAREHOLDERS$$ EQUITY

Common shares $10,600$

Retained earnings $6,500$

TOTAL SHAREHOLDERS$$

EQUITY

$17,100$

TOTAL LIABILITIES AND

SHAREHOLDERS$$ EQUITY

$$25,000$

The following transactions occurred during $2024$:

$1.$ Additional inventory was purchased for $$39,700$ on account.

$2.$ Goods with selling prices totalling $$80,000$ were sold, all on account. These goods cost

XYZ Ltd$.$ $$38,200.$

$3.$ The company received $$78,400$ from customers as payments on accounts receivable.

$4.$ The company paid $$37,300$ to suppliers on its accounts payable.

$5.$ New equipment was purchased for $$15,000$ cash during the year.

$6.$ Employees earned wages for the year totalling $$20,500.($Hint: at this point the wages

should be recorded as payable.$)$

$7.$ Interest on the bank loan, at $8\%,$ was paid on December $31,2024.$

$8.$ Depreciation expense on the company$$s equipment totalled $$2,000$ for the year.

Required

a$.$ Analyze the effects of each of the eight transactions on the company$$s accounts.

b$.$ What is the net income$/$net loss for the year ended December $31,2024?$

Q$2$: Canada Goose Holdings Inc. reported the following amounts: Canada Goose

Holdings Inc. $($amounts in millions$)$

$202020192018$

Total assets $$1,112\mathrm{.}7$ $$725\mathrm{.}4$ $$548\mathrm{.}4$

Total shareholders$$ equity $520\mathrm{.}2399\mathrm{.}1243\mathrm{.}6$

Sales revenue $958\mathrm{.}1830\mathrm{.}5591\mathrm{.}2$

Net income $151\mathrm{.}7143\mathrm{.}696\mathrm{.}1$

Required

a$.$ Calculate the following ratios for the years $2020$ and $2019,$ and explain what they tell you:

I. Profit margin ratio

II$.$ Return on assets

III. Return on equity

b$.$ Explain whether each of these ratios has improved or worsened from $2019$ to $2020.$