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solve it as soon as possible The objective of this exercise is to develop your ability to perform a comprehensive analysis on a set of
solve it as soon as possible
The objective of this exercise is to develop your ability to perform a comprehensive analysis on a set of financial statements. Use the copy of the 2018 annual report of Dollarama Inc. (year end January 28, 2018) from Appendix A. You may need to go to Dollarama's website to get the full annual report including the annual information return. Requirement 1 Basic information (provide sources): a. Using a site such as D&B Hoovers, Google Finance, or Yahoo Finance, look up discount stores. List two competitors of Dollarama. b. Describe Dollaramas risks related to business operations. c. Does Dollarama own any other companies? d. What is Dollarama's largest asset? Largest liability? e. How many common shares are they authorized to issue? How many are issued? Outstanding? f. Did Dollarama repurchase any common shares during the year? If so, how many? g. When does Dollarama record revenue? h. What inventory method does Dollarama use? i. Does Dollarama have any business interests in foreign countries? Explain your answer. Requirement 2 Using information you have leamed in the text and elsewhere, evaluate Dollarama's profitabil- ity for 2018 compared with 2017. In your analysis, you should compute the following ratios and then comment on what those ratios indicate. NOTE: You will have to look up the annual repon for 2017 to obtain total assets and shareholders' equity for 2016. See www.sedar.com or use Dollarama's website. a. Return on sales b. Assel turnover C. Return on assets d. Leverage ratio e. Return on equity Gross profit percentage 9. Earnings per share (show computation) h. Book value per share Requirement 3 Evaluate the company's ability to sell inventory and pay debts during 2018 and 2017. In your analysis, you should compute the following ratios, and then comment on what those ratios indicate. Since the 2018 annual report only includes the balance sheets for 2018 and 2017, you will need to look up the annual report for 2017 for information about 2016 accounts receivable, inventory, and accounts payable. a. Accounts receivable turnover and days' sales outstanding b. Inventory tumover and days inventory outstanding c. Accounts payable turnover and days' payable outstanding d. Cash conversion cycle e. Current ratio f. Quick (acid-test) ratio g. Debt ratio h. Times interest earned The objective of this exercise is to develop your ability to perform a comprehensive analysis on a set of financial statements. Use the copy of the 2018 annual report of Dollarama Inc. (year end January 28, 2018) from Appendix A. You may need to go to Dollarama's website to get the full annual report including the annual information return. Requirement 1 Basic information (provide sources): a. Using a site such as D&B Hoovers, Google Finance, or Yahoo Finance, look up discount stores. List two competitors of Dollarama. b. Describe Dollaramas risks related to business operations. c. Does Dollarama own any other companies? d. What is Dollarama's largest asset? Largest liability? e. How many common shares are they authorized to issue? How many are issued? Outstanding? f. Did Dollarama repurchase any common shares during the year? If so, how many? g. When does Dollarama record revenue? h. What inventory method does Dollarama use? i. Does Dollarama have any business interests in foreign countries? Explain your answer. Requirement 2 Using information you have leamed in the text and elsewhere, evaluate Dollarama's profitabil- ity for 2018 compared with 2017. In your analysis, you should compute the following ratios and then comment on what those ratios indicate. NOTE: You will have to look up the annual repon for 2017 to obtain total assets and shareholders' equity for 2016. See www.sedar.com or use Dollarama's website. a. Return on sales b. Assel turnover C. Return on assets d. Leverage ratio e. Return on equity Gross profit percentage 9. Earnings per share (show computation) h. Book value per share Requirement 3 Evaluate the company's ability to sell inventory and pay debts during 2018 and 2017. In your analysis, you should compute the following ratios, and then comment on what those ratios indicate. Since the 2018 annual report only includes the balance sheets for 2018 and 2017, you will need to look up the annual report for 2017 for information about 2016 accounts receivable, inventory, and accounts payable. a. Accounts receivable turnover and days' sales outstanding b. Inventory tumover and days inventory outstanding c. Accounts payable turnover and days' payable outstanding d. Cash conversion cycle e. Current ratio f. Quick (acid-test) ratio g. Debt ratio h. Times interest earned Step by Step Solution
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