Bootcamp Problem Solutions.docx - AP2–3 Req 1 and 2 Cash and Cash Equivalents Beg 70,410(a 630 14,000(b(d 600 3,400(c(f 1,500 5,400(e(h 310 12,450(g

Bootcamp Problem Solutions.docx - AP2–3 Req 1 and 2 Cash...

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AP2–3 Req. 1 and 2 Cash and Cash Equivalents Accounts Receivable Prepaid Expenses Beg. 70,410 Beg. 260,948 Beg. 14,451 (a) 630 14,000 (b) (d) 600 3,400 (c) 260,948 14,451 (f) 1,500 5,400 (e) (h) 310 12,450 (g) Inventories Other Current assets 9,000 (i) Beg. 553,068 Beg. 16,723 29,200 553,068 16,723 Investments (Non-current) Property, Plant and Equipment, net Intangible Assets (c) 3,400 Beg. 552,437 Beg. 259,981 (g) 21,850 600 (d) (e) 5,400 630 (a) 3,400 573,687 264,751 Goodwill Other Non-Current Assets Accounts Payable and Accrued Liabilities Beg. 141,933 Beg. 26,486 310 (h) 256,442 Beg. 141,933 26,176 256,442 Long-Term Debt Long-Term Provisions Other Long-Term Liabilities 181,000 Beg. 13,042 Beg. 19,612 Beg. (b) 14,000 9,400 (g) 176,400 13,042 19,612 Contributed Capital Retained Earnings Other Components of Equity 101,113 Beg. 1,306,724 Beg. 18,504 Beg. 1,500 (f) (i) 9,000 102,613 1,297,724 18,504
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AP2–3 (continued) Req. 3 Gildan Activewear Inc. Statement of Financial Position As at December 31, 2012 (in thousands of dollars) Assets Current assets Cash and cash equivalents Accounts receivable $ 29,200 260,948 Inventories 553,068 Prepaid expenses Other current assets 14,451 16,723 Total current assets 874,390 Investments 3,400 Property, plant and equipment, net 573,687 Intangible assets 264,751 Goodwill 141,933 Other non-current assets 26,176 Total Assets $1,884,337 Liabilities Current liabilities Accounts payable and accrued liabilities 256,442 Long-term debt 176,400 Long-term provisions 13,042 Other long-term liabilities 19,612 Total Liabilities 465,496 Shareholders’ Equity Contributed capital 102,613 Retained earnings 1,297,724 Other components of equity 18,504 Total Shareholders’ Equity 1,418,841 Total Liabilities and Shareholders’ Equity $1,884,337 Req. 4 Current = Current Assets = $874,390 = 3.41 Ratio Current Liabilities $256,442 This ratio suggests that for every $1 in current liabilities, Gildan Activewear Inc. has $3.41 in current assets. While this represents a high margin of safety for creditors, it also indicates that the company may not using its current assets efficiently to generate income for shareholders.
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AP3–5 (Amounts in millions of dollars) Req. 1 and 2 ASSETS: Cash Receivables Non-current Assets 1,113 ( a ) 60 ( e ) 675 ( f ) 90 74 ( c ) 396 ( d ) 279 (g) 49 (h) 184 (i) 718 ( a ) 564 675 (e) 2,379 ( b ) 540 956 607 2,919 Prepayments Investments (long-term) Other Noncurrent Assets 115 ( c ) 10 553 1,866 125 553 1,866 LIABILITIES: Trade Payables Accrued Liabilities Other Noncurrent Liabilities ( i ) 184 255 130 3,766 71 130 3,766 Deferred Revenues Long-term Borrowings 129 1,111 540 (b) 90 (f) 129 1,741 SHAREHOLDERS' EQUITY: Equity 1,353 1,353
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AP3-5 (continued) REVENUES AND EXPENSES: Delivery Service Revenue Rent Expense Repair Expense 624 ( a ) ( c ) 64 ( d ) 396 624 64 396 Wages Expense Supplies Expense (g) 279 ( h ) 49 279 49 Item (j) does not represent an exchange transaction and is therefore not reflected in the T- accounts. Req. 3 Transaction Effect on Net Earnings Effect on Cash a. $624 $60 b. N N c. 64 74 d. 396 396 e. N 675 f. N 90 g. 279 279 h. 49 49 i. N 184 j. N N
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A P3–5 (continued) Req. 4 CANADA POST CORPORATION Statement of Earnings For the Month Ended January 31, 2012 (in millions) Revenues: Delivery service revenue Operating expenses: Rental expense Wage expense Supplies expense Repair expense Total expenses $ 624 64 279 49 396 788 Net earnings (loss) $(164) Req. 5 CANADA POST CORPORATION Statement of Financial Position As at January 31, 2012 (in millions) Assets Current assets: Cash $ 956 Receivables 607 Prepayments 125 Total current assets: 1,688 Investments 553 Non-current assets 2,919 Other assets 1,866
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  • Winter '12
  • LauraAlan
  • Generally Accepted Accounting Principles

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