Groupe Bikini Village Inc Bikini Village operates 63 retail

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Groupe Bikini Village Inc. (Bikini Village) operates 63 retail stores selling beach and travel
clothing throughout Eastern Canada. Use their consolidated financial statements, presented in
Exhibit 3-25, to answer the following questions.In Exhibit 3-25Statements of Operations and
Comprehensive Loss(in thousands of dollars, except per share amounts)a. As at January 30,
2010 what is the cumulative amount of losses the company has incurred since incorporation?b.
Explain why it was not possible for the company to pay any dividends in the year ending
January 30, 2010.c. If the company continues to lose money at the same rate as in the most
recent year, how long would it take for the shareholders' equity to be totally eliminated? Which
users of the financial statements would be concerned with the decreasing shareholders' equity?
Why?d. Compare the net loss for the most recent year with the cash from operating activities.
Explain how it is possible for the net income to be negative but the cash from operations to be
positive. What kind of accounts or transactions would typically be included in the
"Adjustments"?e. During the year, the company purchased capital assets and intangible assets.
Prepare the journal entries the company would have used to record each of those purchases,
assuming they paid cash.f. Assuming the amortization taken during the year was only related to
the capital assets and not to the intangible assets; prepare the adjusting journal entry the
company would have made to record the amortization expense for the year.View Solution:
Groupe Bikini Village Inc Bikini Village operates 63 retail stores

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