Accounting Question

Assignments are in the attachment

note：Student numberending is 5. Accompanying material for the ebook Introduction to Financial Accounting in the 21st
Century – Gaber & Porporato, 5th Edition McGrawHill
Term Project
Understanding Financial Statements
STEP 1: Understand the Company Assigned to you
Understand the audited annual financial statement for the public company (Canada / USA)
assigned to the last digit of your student number. Example: if your student number is
123468090, the last digit of your student number is 0 and the company assigned to you is
Lululemon Athletica Inc.
The audited annual financial statement obtained from SEDAR must contain audited
financial statements and the MD&A (management’s discussion and analysis). If
complementary data is needed to answer any of the questions of step 2, you can look at any
of the following complementary documents: Annual Report, MD&A or Annual
Information Form.
You can download the financial statements using the URL below.
Student number Company Assigned (published on)
ending
0
Lululemon Athletica Inc.
1
Leon’s Furniture Limited
2
Metro Inc.
3
Canadian Tire Corporation
4
Canada Goose Holdings Inc
5
Linamar Corporation
6
Tilray Brands, Inc
7
Aritzia Inc.
8
Canopy Growth Corporation
9
Loblaw Companies Limited
Submitted Date
URL
28 Mar 2023
22 Feb 2023
20 Dec 2023
Lululemon
Leon
Metro
Cdn Tire
Cdn Goose
Linamar
Tilray
Aritzia
Canopy
Loblaw
16 Feb 2023
18 May 2023
29 Mar 2023
26 Jul 2023
02 May 2023
22 Jun 2023
23 Feb 2023
1
STEP 2: Collect all relevant documents to be able to answer the following:
1) In your own words, write a background of the business assigned to you (maximum
200 words)
2) Calculate the ratios below:
Ratio
Generic Formula
a)
Current ratio
b)
Inventory turnover
c)
d)
Average Collection
Period
Debt Ratio
Current Ratio =
Current Assets / Current Liabilities
Inventory Turnover =
Cost of Goods Sold / Average Inventory
Average Collection Period = (Average of Accounts
(or Trade) Receivable / Net Sales) * 365
Debt Ratio = Total Liabilities / Total Assets
e)
Return on Sales
Return on Sales = Net Income / Net Sales
3) What is the liquidity position of the company you are analyzing? (maximum 50 words)
4) What is the profitability position of the company you are analyzing? (maximum 50
words)
5) Based on your analysis, what is your recommendation to investors: hold, buy, sell?
Provide one reason, supported with numbers or ratios, to justify your opinion.
(maximum 50 words)
STEP 3:
• Type your answer in ONE (Word / Excel / Plain Text) document and submit on
eClass using the submission link.
• Submission of any other format eg Picture of your hand-written work would not be
graded.
Note:
• Use of Chat GPT / AI software is not allowed
• Keep the working papers and other documentation of the work you have done to
complete this part of the term project in case your professor asks. To protect the
academic integrity of programs, courses and assignments, professors rely on
comparing students’ working papers or draft work. The documents can be requested
at any point during the term, so keep them organized.
2