The financial statements of The North West Company Inc. are presented in Appendix A followed by the

Question:

The financial statements of The North West Company Inc. are presented in Appendix A followed by the financial statements for Sobeys Inc. in Appendix B.

Instructions

(a) For each company, calculate or find the following ratios and values for the most recent fiscal year. Industry averages, where available, are shown in parentheses.

1. Working capital (n/a)

2. Current ratio (1.3:1)

3. Debt to total assets (60.6%)

(b) Based on your findings for part P2.7B(b), discuss the relative liquidity and solvency of the two companies and their industry.

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... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...