Tire City Inc. Case Study

In this situation, audit planning should have certain procedures to test the opportunities whether management can commit fraud, such as inquiries of management and employers to establish an overall understanding of the client’s strategies and business, industry and economic environment and competitors’ situations.

These also give us a detailed view of the expected schedule of cash flows over the ten years, which basically tell us what the yearly income will be. This can be helpful when analyzing the yearly distribution of cash flows.

A ratio analysis has been performed on Berry’s Bug Blasters using data from the financial statements from the last two years. Ratios can provide clues to underlying conditions that may not be apparent from

With slow sales, the company had to keep some expenses flat, such as administrative salaries, web creation / maintenance and executive compensations. This is a weakness and as stated before, the company will need to increase sales to increase profits to raise its strength. On the balance sheet for years 7 and 8, the current assets increased in accounts receivables. This is probably due to slow pay and/or unpaid accounts receivables. The change between years 7 and 8 reported -15% with a decrease change of $107,640. Total assets change was -0.2% and this position reflects a financial weakness for the company. Cash and cash equivalents can be used to satisfy during this period, although there was a change of 348.2%, this increase could have been used for operating expenses. This is too much cash sitting idle and not working for the company. Competition Bikes can assess where to put this cash to work for the company.

Two brothers John W. and Alfred J. Billes buy the Hamilton tire and Garage Ltd. with combined savings of $1800 in 1922 in Toronto. In 1923, Hamilton tire and Garage Ltd. was sold by the brothers and they moved to sides of Yonge and Gould under the Canadian tire. In 1927, the Canadian tire corporation was officially incorporated. The chain of Canadian Tire stores began in 1934, with their first associate store (it opened in Hamilton, Ontario).

Corporate Social Responsibility of Canadian Tire and the Bank of Montreal Corporate Social Responsibility (CSR) is “management’s obligation to make decisions that protect and better the wellbeing of all stakeholders” (Lang, 2017, slide 9). It is essential for a business to be socially responsible as it will impact investing and create a more valuable profile. This essay is going to talk about the ways that Canadian Tire and the Bank of Montreal are helping to create an effort to improve society. Canadian Tire Canadian Tire is a very large organization with ties to many other businesses; some of those companies for example would be Sport Chek and Atmosphere.

The above figure is the comparative balance sheet of Canadian Tire Corporation, Limited. for the year 2009 to 2010. In the assets section, though current assets decreased by 3.7%, the total assets decreased only by 1.2% because the net capital assets increased by 2.3%. The similar trend appeared in the liabilities section, too. The current liabilities decreased by 20.2% while the long-term liabilities increased by 1.9%. As a result, the total liabilities decreased by 9.4%. In the shareholders’ equity section, there was a 0.1% decrease in the common shares but 12.6% increase for the retained earnings which made the total shareholders’ equity

The productive assets of property, plant, and equipment changed dramatically in 1996 they were 5,581 to 2010 an increase to 21,706. In total current assets there was a increase in 1996 from 5,910 to in 2010 21,579. Another significant change is in long term debt in 1996 of 1,116 to in 2010 an increase to 14,041. Also an important figure to note is in the retained earning in 1996 they were 94% (15,127) to 2010 68%

321). The decision by Ashley to involve the current line foremen as key persons in the decision making process is a good idea at the executive level. However, they are not thought of as “true company men and may be a part of the problem and resistant to the inclusion” (Lapinski, Anderson, Greunke, 2012). In addition, they are not trusted by the workers and are bitter which may influence the inquiry and expected outcome.

If you need to purchase new tires this spring for your vehicle, make sure that you keep the following four things in mind as you go through the tire-purchasing process.

In the late 1990’s and early 2000’s several accidents were reported of Ford Explorers equipped with Firestone tires rolling over as a consequence of tires’ failures. By the end of 2000 the death toll was estimated at more than 250, and some

Net income totaled $97.8 million in 1984, an increase of 5% from 1983.when looking at the Consolidated Balance Sheet (Exhibit2), we found that the total assets grew 15% to $2.7 billion at the end of fiscal 1984 due to addition of real estate inventories as part of the acquisition of another company. The ratio of debt to total capitalization jumped to 43% at 1984 from 20% at previous year.

The Goodyear name has been one of the most recognized brands in the tire industry around the world. They are known for having a superior quality product through the price and positions they have chosen. Their slogan, “The best tires in the world have Goodyear written all over them,” (Kerin, 2005) provides their customers with a high class message and creates an importance for them to preserve the accessibility of their high value brands. Unfortunately, consumers have become more price conscious about their tire purchases and less focused on loyalty to a specific brand. They experienced a 3.2% decline in the market share for the tires associated with passenger car replacement (Kerin, 2005). Because of this change, Goodyear has seen a drop in their sales. With already 2 million Goodyear brand tires, which have been worn out, being replaced at 850 Sears Auto Center locations annually, Goodyear reopened previous discussions with Sears to possibly sell their Eagle brand tires or all Goodyear tire brands through them. Choosing to do so could create great benefits for the company but could also generate turmoil within their franchises and other retail chains where their brands are sold. Before making the final decision, they must determine how this move will affect their franchisees, are they willing to significantly change their distribution policy, what brands Goodyear will allow to be retailed through the Sears network, and how cannibalization of their brands sold via other

These ratios are comparing the income statements accounts and categories to reflect and to present the company’s ability of generating profit from their operations. They can be used by investors and as well by creditors to judge the company returns on investment based on its relative level of assets and resources.

Values used in calculating financial ratios are taken from the balance sheet, income statement, statement of cash flows or (sometimes) the statement of