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Hana Kishawy 100696634 UNIVERSITY OF ONTARIO INSTITUTE OF TECHNOLOGY BUSI 1130—Introductory Financial Accounting I Winter 2019 Face-to-face hand-in assignment #2 Submission Requirements  You must hand in your face-to-face submissions at the start of class. Late submissions will not be accepted.  Face-to-face assignments must be typed.  You must attempt to answer all questions, including any required calculations, in order to receive a passing grade.  YOU MUST WORK ON YOUR OWN. INSTANCES OF PLAIGARISM WILL BE TAKEN SERIOUSLY. Part I – Dollarama Financial Statements (found in Content folder):

1. Provide a description of Dollarama Inc. Include the business environment along with stakeholders that are relevant to Dollarama. Dollarama’s sole purpose of opening up and beginning to run was to provide consumers with goods that were all priced $4.00 or less. The franchise and company began in October during the year 2004, almost 15 years ago. And you can locate the company all across Canada now due to the big impact its had on the consumers and the growth the company has made throughout the years. In regards to the impact it may have on the business environment, I can’t really come across an issue that may have an impact. Stakeholders that are relevant to Dollarama would be like managers, owners of the franchise etc., with the exception of external stakeholders as well who are those that contribute outside of the company and or location.

2. What pages can you find Dollarama’s audited financial statements and what are the names of the financial statements? The name of the financial statements would be the statements of financial positions, statements of changes in shareholders deficit, statements of net earnings, statement of comprehensive income and statement of cash flow. And In order to find Dollarama’s audited financial statements, you would need to go on pages 1-2

3. What were Dollarama’s sales for the period and what was their comprehensive income? Calculate the Profit Margin for 2018 and 2019. The comprehensive income for Dollarama in the year of 2019 was $581,411 where was for 2018 it was $488,333. You can tell that just within a year the total went up by roughly

Hana Kishawy 100696634 $100,000. The sales periods were $3,266,090 and $3,548,503, respectably to January 2018 and February 2019. After calculating the profit margin for 2018 and 2019. I can conclude that for 2019 it was 39.9% whereas for 2018 it was 39.8%.

4. What are the total assets and liabilities for Dollarama? How much is current and how much is non-current? If you take total assets minus total liabilities what is the value and what does this number represent? - 2018 o Current assets: $569,969 o Non-current assets: $1,364,370  Total assets = $1,934,339

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o Current liability: $720,945 o Non-current liability: $1,465,752  Total liabilities = $2,186,697 2019 o Current assets: $709,639 o Non-current assets: $1,468,697  Total assets = $2,177,895 o Current liability: $288,583 o Non-current liability: $2,123,408  Total liabilities = $2,411,991 After doing the calculations and taking the total assets and subtracting it to total liabilities, the values come out as - $252,357 for 2018 and for 2019 it is - $234,096. Both of these numbers are negative because it essentially means that Dollarama’s liabilities has surpassed assets. These number also play within in the shareholders equities.

5. What accounting standard does Dollarama report under? Explain why Dollarama would be required to report under this standard. The accounting standard that Dollarama repots under would be the International financial reporting standards, also known as (IFRS) for short. The reason behind why Dollarama reports under this system is because the they make it easier for Dollarama and other similar companies on bringing in popularity and consistency to general accounting practices. However, IFRS also boosts words on the companies which is what

Hana Kishawy 100696634 helps the companied bring in more consumers. It also in tells on making detailed important decisions.

Part II: Please complete the following question:

Q1: Below is a simplified balance sheet for Summerside Inc. (Summerside):

Calculate the following on December 31, 2017 using Summerside's balance sheet and a net income of $450,000. 1. working capital i. 2250000 – 1750000 = $500,000 2. Return on Assets i. 45000/8500000 = 5.3% 3. Return on Equity i. 4500000/4250000 = 10.5% (hint: if you are not given enough information to calculate an average use the account balance)

Hana Kishawy 100696634

Q2: You have been provided with the following alphabetical list of accounts for Toronto Ltd. for 2017. Use the information to prepare an income statement, statement of changes in equity, and statement of comprehensive income for the year ended December 31, 2017, and balance sheet as of December 31, 2017. You should be able to figure out how to treat accounts that have names unfamiliar to you by applying your understanding of the financial statements learned in this chapter.

Hana Kishawy 100696634 Income statement

December 31st 2017 $ 85,000 342,800

Cash sales Credit sales Total sales

427,000 120,000 308,800

Cost of goods Gross profit Advertising/promotion expense Depreciation Expense salaries/wages Research Operating. Income interest expense interest revenue financing cost

43,000 21,700 84,00 18,800

Other

22,000

141,300 11,200 1,500 9,700

Earning before income tax income taxes Net Earnings

Statement of change in equity:

109,600 21,000 110,600

December 31st 2017 $

Net Earnings

110,600

Commons shares Dividends Investment in shares within other corp.

111,000 32,000 130,000

Net increase for owner’s equity

318,600

Hana Kishawy 100696634 Statement of Comprehensive Income:

December 31st 2017 $

Net Earnings

110,600

Retained Earnings Dividends Donations Other comprehensive Income Accumulated comprehensive income

89,00 33,000 10,00 25,000 45,000

Total Comprehensive Income

Balance Sheet:

226,600

December 31st 2017 $

Assets Current Assets account receivable prepaid expenses cash inventorie s investment in shares of other corporations Non-current assets Accounts receivable 2021 plant and equipment accumulated depreciation other non-current assets Total assets

38,000 3,500 35,000 52,000 130,000

15,000 260,000 51,000 188,000 501,300

Liabilities Current Liabilities Accounts payable

31,000

Hana Kishawy 100696634 accrued liabilities salaries/ wages income tax payable current portion of long-term debt dividends deposits from consumers bank loan Non-current liabilities long-term debt Total Liabilities Equities investment in shares of other corp. common shares Total Equities Total Liabilities and Equities

8,000 5,500 4,500 25,000 33,000 9,200 275,000 100,000 243,700

130,000 111,000 241,000

484,700...