Refer to Canadian Tire's financial statements in Appendix A at the end of this book, and answer the following question
Refer to Canadian Tire's financial statements in Appendix A at the end of this book, and answer the following questions.
1. Which depreciation method does Canadian Tire use for reporting to shareholders and creditors in the financial statements?
2. During 2014, Canadian Tire sold building, fixtures, and equipment (assets). What were the proceeds? What was the cost of the building, fixtures, and equipment disposed of?
3. How much did Canadian Tire pay for land, building, and fixtures during 2014? What about in 2013? Evaluate the trend in these expenditures as to whether it conveys good news for Canadian Tire.
4. During 2014, Canadian Tire added new property, plant, and equipment. Therefore, it is possible that the company's property and equipment at the end of 2014 were proportionately newer than the assets the company held at the end of 2013. Were property and equipment proportionately newer or older at the end of 2014 (versus 2013)?