The financial statements of Shoppers Drug Mart are presented in Appendix A at the end of this book.
Instructions
(a) Does Shoppers use the indirect or direct method of calculating operating activities?
(b) What was the amount of net operating cash flows reported for 2012? For 2011?
(c) From your analysis of the 2012 statement of cash flows, what was the most significant investing activity? Financing activity?
(d) What amount was reported as the increase or decrease in cash and cash equivalents on the statement of cash flows for 2012? 2011?
(e) Did Shoppers grow during 2012 by purchasing other drugstores or did it just open up new locations or both?
(f) By comparing operating, investing, and financing cash flows for 2012, describe how Shoppers spent its operating cash flows. Was this a different approach than the one taken in 2011?
Comparative Analysis: Shoppers Drug Mart and Jean Coutu