Brick Brewing Co Limited is a Canadian owned brewery

with its #234

Brick Brewing Co. Limited is a Canadian-owned brewery with its head office in Kitchener,
Ontario. The company brews, sells, and markets its products under the Waterloo, Laker, Red
Baron, Red Cap, and Formosa brand names.The company also produces, sells, markets, and
distributes Seagram’s Coolers across Canada. The information in Exhibit 7-22 was taken from
the company’s 2014 annual financial statements.Required:a. Note 15, shown in Exhibit 7-22C,
breaks down Brick’s inventory into three categories. Which categories of inventory do you
believe should be used in determining the inventory turnover ratio? Why?b. Describe Brick
Brewing’s inventory valuation policies in your own words. Specifically, explain what Brick
Brewing includes in inventory cost, what cost formula(s) the company uses, and how it values
its inventory on the statement of financial position.c. Calculate the inventory turnover ratio and
days to sell inventory ratio for 2014 and 2013. Use the inventory values in 2014 and 2013 rather
than the average inventory to calculate the ratios. Explain the amounts you selected from the
financial statements to use in your calculation.d. Calculate the current and quick ratios and
comment on them.View Solution:
Brick Brewing Co Limited is a Canadian owned brewery with its

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