Ch17FFSOnline - b. increase or decrease equity Fnancing? c....

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Focus on Financial Statements Online FFS 17-2 FFS 17-3 FFS 17-4 Chapter 17 Required Answer the following questions by referring to the December 31, 2002, Fnancial statements for each of Leon’s and WestJet in Appendix I in the back of the textbook. 1. How much long-term debt does Leon’s report on its balance sheet? 2. How much of Leon’s total assets are Fnanced by debt? By equity? 3. How much long-term debt does WestJet report on its balance sheet? 4. How much of WestJet’s total assets are Fnanced by debt? By equity? 5. Which of the two companies has the stronger 1 balance sheet? With its head ofFce in Toronto, Ontario, Reitmans (Canada) Limited is a specialty clothing retailer with more than 820 stores across Canada. Required Refer to Reitman’s ±ebruary 1, 2003, financial statements and answer the following questions. 1. What was the change in long-term debt from ±ebruary 2, 2002, to ±ebruary 1, 2003? 2. Did this change a. increase or decrease debt Fnancing?
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Unformatted text preview: b. increase or decrease equity Fnancing? c. strengthen 1 or weaken the balance sheet? 3. What was the change in interest costs on long-term debt from 2002 to 2003? CHUM Limited has its head ofFce in Toronto, Ontario. It owns and operates 30 radio stations, eight local television stations, and 18 specialty channels. Required Refer to CHUMs August 31, 2003, Fnancial statements and answer the following questions. 1. The balance sheet lists Program rights payable twice. Explain. 2. Considering the type of business CHUM operates, deFne Program rights payable ? 3. Did long-term debt increase or decrease from 2002 to 2003? 4. Did the change in long-term debt strengthen 1 or weaken the balance sheet? 1 When a balance sheet is said to have been strengthened , it means, in general, that total liabilities (or risk associated with debt fnancing) have decreased and shareholders equity has increased....
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