References Review ut Assignment *4 . Protected View - Saved to this PC Mailings View Help Search contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing The task is to prepare the financial analysis of Canadian Tire for year 2020. You could probably find such analysis on the Web, but my marking sheet focuses on what is required in these two pages only. Part 1 - Common size analysis Even though financial statements are more detailed, please consider only the following accounts. 2020 100% Statement of income Revenue Cost of producing revenue Gross margin Other expense (income) SG&A expense Net finance costs Income taxes Net income 2019 14,534.4 9,660.6 4,873.8 (13.4) 3,437.5 266.8 288.1 894.8 100% 66.5% 33.5% -0.2% 23.7% 1.8% 2.0% 6.2% 2020 100% Statement of financial position Total assets Ourrent assets Non-current assets 2019 19,518.3 9,555.3 9.963.0 100% 49.0% 51.0% I 2020 100% Assets Total assets Cash and cash equivalents Trade and other receivables Merchandise inventories Prepaid expenses and deposits Property and equipment 2019 19,518.3 205.5 938.3 2,212.9 139.3 4,283.3 100% 1.1% 4.89 11.396 0.79% 21.9% 2020 Statement of financial position Total liabilities + equity 2019 19,518.3 100% 100% Focu w 1 Assignment=4 . Protected View - Saved to this PC- out References Mailings Review View Help Search n contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Net finance costs 266.8 Income taxes 288.1 Net income 894.8 1.8% 2.0% 6.2% 2020 100% Statement of financial position Total assets Current assets Non-current assets 2019 19,518.3 9,555.3 9,963.0 100% 49.0% 51.0% 2020 100% Assets Total assets Cash and cash equivalents Trade and other receivables Merchandise inventories Prepaid expenses and deposits Property and equipment 2019 19,518.3 205.5 938.3 2,212.9 139.3 4,283.3 100% 1.1% 4.8% 11.3% 0.7% 21.9% 2020 100% Statement of financial position Total liabilities + equity Current liabilities Non-current liabilities Total liabilities Equity T 2019 19,518.3 5,751.4 8,262.2 14,013.6 5,504.7 100% 29.5% 42.3% 71.8% 28.2% I prefer that you don't go further in analyzing liabilities. Canadian Tire's liabilities are complex and most of the items are unknown to you. Assignment 4 . Protected View - Saved to this PC- Layout References Mailings Review View Help Search net can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Part II - Ratio Analysis Show your calculation for 2020 2020 Gross profit margin Profit margin Interest coverage Debt to assets Current ratio Return on assets Return on equity #days in receivables #days in inventories 2019 33.5% 6.2% 5.4 times 71.8% 1.7 times 4.9% 16.4% 23.5 days 79.5 days Part III - Interpretation I Answer the following questions using the information you have gathered in the two previous sections. The rest of this page should be enough. Please stay within this analysis and support what you say. Example: - Canadian Tire is more profitable (bad answer) Canadian Tire is more profitable as evidenced by the higher ROA (good answer) (please note that at this point, I don't know if ROA is actually higher...) Q1: Has the asset structure changed in 2020? What has changed? 02: How the financial structure changed in 2020? What has changed? 03. List facts that show that Canadian Tire did better than last year. 04: List facts that show that Canadian Tire did worse than last year. 05: What is your general conclusion about the performance of Canadian Tire in 2020? (don't repeat your analysis, but indicate the most important pieces of information that support your conclusion) Focus w References Review ut Assignment *4 . Protected View - Saved to this PC Mailings View Help Search contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing The task is to prepare the financial analysis of Canadian Tire for year 2020. You could probably find such analysis on the Web, but my marking sheet focuses on what is required in these two pages only. Part 1 - Common size analysis Even though financial statements are more detailed, please consider only the following accounts. 2020 100% Statement of income Revenue Cost of producing revenue Gross margin Other expense (income) SG&A expense Net finance costs Income taxes Net income 2019 14,534.4 9,660.6 4,873.8 (13.4) 3,437.5 266.8 288.1 894.8 100% 66.5% 33.5% -0.2% 23.7% 1.8% 2.0% 6.2% 2020 100% Statement of financial position Total assets Ourrent assets Non-current assets 2019 19,518.3 9,555.3 9.963.0 100% 49.0% 51.0% I 2020 100% Assets Total assets Cash and cash equivalents Trade and other receivables Merchandise inventories Prepaid expenses and deposits Property and equipment 2019 19,518.3 205.5 938.3 2,212.9 139.3 4,283.3 100% 1.1% 4.89 11.396 0.79% 21.9% 2020 Statement of financial position Total liabilities + equity 2019 19,518.3 100% 100% Focu w 1 Assignment=4 . Protected View - Saved to this PC- out References Mailings Review View Help Search n contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Net finance costs 266.8 Income taxes 288.1 Net income 894.8 1.8% 2.0% 6.2% 2020 100% Statement of financial position Total assets Current assets Non-current assets 2019 19,518.3 9,555.3 9,963.0 100% 49.0% 51.0% 2020 100% Assets Total assets Cash and cash equivalents Trade and other receivables Merchandise inventories Prepaid expenses and deposits Property and equipment 2019 19,518.3 205.5 938.3 2,212.9 139.3 4,283.3 100% 1.1% 4.8% 11.3% 0.7% 21.9% 2020 100% Statement of financial position Total liabilities + equity Current liabilities Non-current liabilities Total liabilities Equity T 2019 19,518.3 5,751.4 8,262.2 14,013.6 5,504.7 100% 29.5% 42.3% 71.8% 28.2% I prefer that you don't go further in analyzing liabilities. Canadian Tire's liabilities are complex and most of the items are unknown to you. Assignment 4 . Protected View - Saved to this PC- Layout References Mailings Review View Help Search net can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Part II - Ratio Analysis Show your calculation for 2020 2020 Gross profit margin Profit margin Interest coverage Debt to assets Current ratio Return on assets Return on equity #days in receivables #days in inventories 2019 33.5% 6.2% 5.4 times 71.8% 1.7 times 4.9% 16.4% 23.5 days 79.5 days Part III - Interpretation I Answer the following questions using the information you have gathered in the two previous sections. The rest of this page should be enough. Please stay within this analysis and support what you say. Example: - Canadian Tire is more profitable (bad answer) Canadian Tire is more profitable as evidenced by the higher ROA (good answer) (please note that at this point, I don't know if ROA is actually higher...) Q1: Has the asset structure changed in 2020? What has changed? 02: How the financial structure changed in 2020? What has changed? 03. List facts that show that Canadian Tire did better than last year. 04: List facts that show that Canadian Tire did worse than last year. 05: What is your general conclusion about the performance of Canadian Tire in 2020? (don't repeat your analysis, but indicate the most important pieces of information that support your conclusion) Focus w