This case is based on the financial statements of Canadian Tire, which can be found in Appendix A at the back of the book and on My-Accounting-Lab. As you work with Canadian Tire throughout this course, you will develop the ability to analyze financial statements of actual companies.

Requirements

1. Does Canadian Tire's financial condition look strong or weak? How can you tell?

2. What was the result of Canadian Tire's operations during 2014? Identify both the name and the dollar value of the result of operations for 2014. Does an increase (decrease) signal good news or bad news for the company and its shareholders?

3. Which statement reports cash as part of Canadian Tire's financial position? Which statement tells why cash increased (or decreased) during the year? What items caused Canadian Tire's cash to change the most in 2014?