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Ch18FFSOnline - Required Refer to Sobeys’ Fnancial...

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F o c u s o n F i n a n c i a l S t a t e m e n t s O n l i n e FFS 18-2 FFS 18-3 FFS 18-4 C h a p t e r 1 8 Required Refer to the financial statements for Leon’s on pages I-3 to I-9 in Appendix I at the end of the textbook and answer the following questions. 1. Leon’s reported marketable securities of how much at December 31, 2002, and 2001? 2. What basis did Leon’s use to report its marketable securities? 3. Note 1 to the financial statements indicates that the marketable securities consist of bonds with maturities not exceeding eight years. Shouldn’t bond investments with an eight-year term be classified as a long-term asset as opposed to a current asset? Explain your answer. Based in Stellarton, Nova Scotia, Sobeys Inc. is a retail grocery and food distributor that owns or franchises more than 1,300 stores under the names Sobeys, Garden Market IGA, IGA, IGA extra and Price Chopper.
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Unformatted text preview: Required Refer to Sobeys’ Fnancial statements and answer the following questions. 1. Sobeys reports $191.4 (million) and $77.7 (million) of temporary investments at May 3, 2003, and May 4, 2002, respectively. Do these amounts represent the cost or market value of the investments? Explain under what circumstances either the cost or market values would have been reported, identifying the appropriate GAAP. 2. Assume the temporary investments had been reported at cost instead of market value on the May 3, 2003, balance sheet. Identify the effect on Sobeys’ Fnancial statements. Corel Corporation has its head ofFce in Ottawa, Ontario. Required Refer to Corel’s income statement for the year ended November 30, 2002. What is the loss (gain) on foreign exchange reported for the year? Explain, in broad terms, how this loss (gain) resulted....
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