This case is based on the financial statements of TELUS, which you can find in Appendix A

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This case is based on the financial statements of TELUS, which you can find in Appendix A at the back of the book . As you work with TELUS's financial statements throughout this course, you will develop the ability to use actual financial statements.
Requirements
1.
Suppose you own shares in TELUS. If you could pick one item on the company's income statement to increase year after year, what would it be? Why is this item so important? Did this item increase or decrease during the year ended December 31, 2011? Is this good news or bad news for the company?
2. What was TELUS's largest expense each year? In your own words, explain the meaning of this item. Give specific examples of items that make up this expense. Why is this expense less than sales revenue?
3. Use the balance sheet as at December 31, 2011, to answer these questions. At December 31, 2011, how much in total resources did TELUS have to work with? How much did the company owe? How much of its assets did the company's shareholders actually own? Use these amounts to write TELUS's accounting equation at December 31, 2011 (express all items in thousands of dollars).
4. How much cash, including temporary investments, did TELUS have at December 31, 2010? How much cash did it have at December 31, 2011? Where does TELUS get most of its cash? How does the company spend its cash?
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...
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Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

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