The financial statements for Dollarama Inc. are in Appendix A. Required Use the financial statements to answer

Question:

The financial statements for Dollarama Inc. are in Appendix A.

Required

Use the financial statements to answer the following questions:

a. Calculate the following ratios for 2017 and 2016. For the 2016 ratios, use the year-end balance sheet amounts, rather than an average for the year.

i. Gross margin

ii. Profit margin

iii. Inventory turnover

iv. Debt to equity and net debt as a percentage of total capitalization

v. Return on assets and return on equity

b. Comment on Dollarama’s profitability and use of leverage over the period.

c. Calculate and comment on Dollarama’s current ratio and quick ratio for both years. What factor led these ratios to be high in 2016? What factor likely led to the decline in 2017 for Dollarama?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Fantastic news! We've Found the answer you've been seeking!