Base your answers to the following questions on the 2014

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Base your answers to the following questions on the 2014 financial statements for Le Château
Inc. in Exhibits 1-10A to C.Exhibit 1-10b LE CHATEAU INC.’S 2013 CONSOLIDATED
STATEMENTS OF LOSSYears ended January 25, 2014 and January 26, 2013[In thousands of
Canadian dollars, except per share information]In the questions below, the year 2014 refers to
Le Château’s fiscal year ended January 25, 2014, and the year2013 refers to the prior year
ended January 26, 2013.Required:a. Le Château has issued consolidated financial statements.
What does the word consolidated at the top of a financial statement tell you about the
company’s structure?b. Le Château prepared a classified statement of financial position.
Calculate the difference between current assets and current liabilities at the end of 2014, and at
the end of 2013.This amount is referred to as working capital. Did the company’s working
capital improve in 2014? Explain.c. Find the following amounts in Le Château’s statements
(note that the amounts are in thousands of Canadian dollars):i. Sales revenues in 2014ii. Cost
of sales in 2014iii. Finance costs (cost of debt) in 2013iv. Income tax expense (recovery) in
2014v. Net income (loss) in 2013vi. Intangible assets at the end of 2014vii. Trade receivables
(accounts receivable) at the beginning of 2014viii. Share capital at the end of 2014ix. Property,
plant, and equipment at the end of 2014x. Cash flows from operating activities in 2014xi. Cash
payments to acquire intangibles and property, plant, and equipment in 2013xii. Cash used for
the payment of dividends in 2013xiii. Cash produced from or used for financing activities in
2014d. Did Le Château finance the company’s assets mainly from creditors (total liabilities) or
from shareholders (shareholders’ equity) in 2014? Support your answer with appropriate
calculations.e. List the two largest sources of cash and the two largest uses of cash in 2014.
(Consider cash generated from operating activities to be a single source or use of cash.)f.
Suggest some reasons why there was a loss of approximately $15,986 thousand in 2014, yet
cash generated from operating activities was only a negative (or outflow of) $3,356
thousand.View Solution:
Base your answers to the following questions on the 2014

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