Assignment - Financial Statement Analysis- Summer 2021-1 PDF

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Air Canada assignment financial analysis. First assignment...

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BUSI 293 Assignment – Interpreting Financial Statements

Question 1 st

Use the Air Canada financial statements for the year ended December 31 , 2020 and answer the following questions: 1. What were the total revenues for 2020? What was the percentage increase or decrease in sales revenue over 2019? 2. What were the net earnings for 2020 and 2019? What was the percentage increase or decrease in net earnings for 2020 compared to 2019? 3. Examine the operating expenses for both years. What was the percentage increase or decrease in operating expenses for 2020 compared to 2019? 4. From your analysis in parts 1-3, what were the major factors that affected the change in net earnings between 2019 and 2020? st 5. What was the balance of the current assets at December 31 , 2020? What asset was the most significant individual current asset? 6. Why are advance ticket sales considered a current liability? 7. What is the total amount of property and equipment shown on the consolidated statement of st financial position as of December 31 , 2020? 8. In the notes to the financial statements, you can find a breakdown of the property and equipment (note 6). What is the largest component of the property and equipment and what was the book value?

9. Review the shareholders’ equity portion of the Statement of Financial Position. How many new shares did Air Canada issue in 2020 and for what value? See note 13 of the notes to the financial statements to assist you in answering this question. st

10. What was the balance in the retained earnings account at December 31 , 2020? What causes the difference between the balance at the end of 2020 versus the balance at the end of 2019? 11. Review the consolidated statement of cash flows. How much cash was generated from the operating activities during 2020? 12. On a net basis, did Air Canada receive cash from increasing the long-term debt or did the company reduce the long-term debt? Determine the net cash increase or decrease from 2019 to 2020. 13. Overall, do you think that Air Canada had a better year, financially, in 2019 or 2020? Explain by providing two reasons of support for your conclusion....