70.2K

Verified Solution

Link Copied!

Show me the steps to solve :

Alimentation Couche$-$Tard Inc., or simply Couche$-$Tard, is a Canadian multinational operator of

convenience stores. The company has $15,000$ stores across Canada, the United States, Mexico,

Ireland, Norway, Sweden, Denmark, Estonia, Latvia, Lithuania, Poland, Russia, Japan, China, and

Indonesia. The company operates its corporate stores mainly under the Couche$-$Tard, Circle K

and On the Run brands, but also under the affiliated brands $7-$jours, Dairy Mart, Daisy Mart and

Winks.

$1.$ Prepare the Balance Sheet

The last quarter of $2020$ Couche$-$Tard financial state includes the following:

Title Amount $($in $1000$ USD$)$

Cash $2,411,450$

Cash Equivalents $1,230,050$

Short Term Investment $38,600$

Account Receivable $518,100$

Account Payable $1,507,600$

Current Debt $214,700$

Common Stock $694,800$

Inventory $1,237,400$

Property, Plant and Equipment $17,633,900$

Equity and other investments $237,900$

Goodwill $5,505,800$

Retained Earnings $10,611,300$

Tax Payable $222,000$

Long Term Debt $15,087,000$

Prepare the Balance Sheet by using the information in the table above.

$2.$ Adjustment of the Balance Sheet

Apply the following changes to prepare the new Balance Sheet:

$$ If Couche$-$Tard collected $$110,000,000$ from its own debtors on an existing account

receivable.

$$ If they purchased $$300,000,000$ of equipment, agreeing to pay for it later.

$$ If they did some work for clients in exchange for the client$$s promise to pay $$750,000.$

$$ Imagine that Couche$-$Tard paid $$345,000$ for expenses.

$3.$ Prepare the income statement

The last quarter of $2020$ Couche$-$Tard financial statement includes the following:

Title Amount $($in $1000$ USD$)$

Sales Revenue $54,132,000$

Taxes $545,900$

Depreciation and Amortization $1,336,800$

Operating and SA&G Expenses $1,314,000$

Cost of Goods Sold $44,397,000$

Interest Expense $4,352,361$

Prepare the Income Statement by using the information in the table above.

$4.$ Prepare the Retained Earning

Prepare the $2020$ Retained Earnings for Couche$-$Tard Inc. according to the following financial

information and net income which was calculated in part $3$:

Title Amount $($in $1000$ USD$)$

Dividends $250,465$

Retained Earnings on January $1202010,524,000$

$5.$ Profitability analysis

According to the Ratio Analysis and using all the above information discuss the profitability of

Couche$-$Tard in $2020.$ Calculate the following ratios and give a brief explain of what the ratio

measures for Couche$-$Tard.

$$ Gross Margin Ratio

$$ Profit Margin Ratio

$$ Return on Assets Ratio

$$ Return on Equity Ratio

Answer & Explanation Solved by verified expert

See Answer