Faculty of Business
Accounting for Managers I
Annual Report Project
Company name SHOPPERS DRUG MART CORPORATION
Year end 2010
Main business activity of your Company ____________________________________
What is the stock exchange trading symbol for your company? ____________________
What was the date that the company posted their audited year-end financial statements on the Sedar.com website. __
Within a company's Annual Report, management and its Board will usually provide information regarding the company's future plans and strategies. Please list three of your company's plans, goals or objectives for the future (after the year end). Other resources you may wish to consult are business publications, news reports etc. (please note your sources of this information)
Find some recent events about your company since this annual report was issued with Sedar (date above). These may be found in the Press Release section of the company's website or by using resources, such as the Globe and Mail etc. from the business press. Briefly describe three of these events as well as your source(s) of this information:
Using the results for your company's most recent year end (unless otherwise indicated), please answer the following questions:
1. What was the Total Revenue of your company? (Pg __) _$___________________
2. Did the total Revenue increase or decrease from the previous year and by how much (show calculation)? ______________________
3. What was your company's Net Income (loss) and if applicable, Comprehensive Net Income (loss)? (Pg __) ____________________
4. What was the value of the company's Total Assets? (Pg __) ________________
5. What was the largest Asset reported? (Pg __) _________________________
6. In which Financial Statement (not notes to the financial statements) would you find information about Dividends? Did your company pay its shareholders any Dividends during the year? If so, how much? (Pg __)_____
7. Does the company have any intangible assets? If yes, what type? (Pg ____note # __)
8. Does your company report Inventory? If so, how much ($)? (pg.__) ____________________
9. What type of inventory is it? Finished goods, raw materials, supplies? (pg __note #__) _____________________________________________________________________
10. What type of Costing method has the company used to value its Inventory? (pg__note#__ ) _______________________________________________________________________
11. What is your company's Largest Expense account in the current year? (Pg.__) _____________________
12. Are the financial statements consolidated? If yes, with whom are they consolidated? (Pg.__, note #_____)
_____________________________________________________
13. Record the Accounting Equation using the amounts ($) from your company's Financial Statements for both year ends presented in the financial statements.
14. Calculate the following for your company for both years shown on their F/S:
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Most Recent Year End
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Prior Year End
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Show Calculations
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Working capital
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Current Ratio
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Based on the information above, has the liquidity of your company improved over the prior year? Yes or No and Explain.
15. What are accrued liabilities? Does the company report any accrued liabilities? If yes, how much and what type(s) (pg.__)? ________________________________________________________________________
16. Is the company's Balance Sheet a Classified Balance Sheet, how do you know? ___________________
17. What is the balance of Retained Earnings or Deficit at year end? (pg __ )____________________________________________________________________
18. What was the largest Current Liability reported? ___________________________
19. What was the Total Balance of Long Term Liabilities reported by your company? (page ) ____________
20. Does the company have any commitments or contingencies? If yes, briefly describe them in your own words (page ___ Note#___)
___________________
21. If applicable, what was the balance of the Current Portion of LTD?
_____________________________________________________________________
22. What is the dollar value reported for Capital stock and how many shares are issued and outstanding? (page __ note #_____ )
_____________________________________________________________________
23. What is the amount of the company's Allowance for Doubtful Accounts at year end? (page __ ) If there is none, where did you look?____________________
24. Who are the auditors of this company (page __)? Are the auditors part of this company's management and do the auditors dictate which accounting policies this company choses (explain)? ______________________
25. How much Cash has been generated (or used) from (each) Operating, Investing and Financing Activities (page ____)?______________________
26. The Balance for Cash at the Bottom of the Statement of Cash Flows statement agrees to what other balance in which Financial Statement? ____________________________________________________________________
27. Go to the F/S Note which supports your Long-Term Assets such as "Property, plant and equipment" and copy it into the following chart, if available:
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Assets
Name or category
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Cost
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Accumulated Depreciation per group of assets if available
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Net Book Value
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$
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$
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$
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(Insert more lines if they are required)
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Total for all assets
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$
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$
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$Agrees to B/S
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28. What Depreciation method does your company use to Depreciate their Fixed Assets (page___note#_____)?_____________________________________________________________________________________
29. Identify and describe one interesting thing you learned about your company from reviewing their financial statements and the accompanying notes. (Page __)