Shoppers Drug Mart Corporation s 2011 financial statements can be found at the end of this volume or on the company website. The company is the licensor of full-service retail drug stores that sell pharmacy, health, and beauty products. Instructions Review the financial statements and notes of Shoppers Drug Mart and answer the following questions. (a) Prepare a summary analysis of Shoppers Drug Mart s sources and uses of cash at the level of operating, investing, and financing subtotals only, for 2011 and 2010. Based on this, comment on the similarities and differences in the company s needs for cash and how they were met over the past three years. (b) What method of reporting operating cash flows does Shoppers use in the statement of cash flows? Do you think this approach provides useful information to a potential investor? (c) Using the information provided in the statement of cash flows, determine the balances of the Trade Receivables, Inventories, and Accounts Payable and Accrued Liabilities that would have been reported on the December 31, 2011 statement of financial position. Compare this with the actual balance at December 31, 2011, provided in the notes and explain any differences. (d) Explain why interest paid has been deducted and finance expenses have been added on the statement of cash flows. Companies have a choice in classifying interest and finance costs. What choice did Shoppers make with respect to this? (e) Based only on the information in the

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