Trend Analysis for Canadian Tire Balance Sheet Strengths: The first strength that stood out on Canadian

Tires balance sheet was the significant increase in the values of the line cash and cash equivalents between 2011 and 2012. This increase can indicate that the company sold more products in 2012. Another strength that can be identified is the significant increase in the trade and other receivables line. Once again, this also indicates that the company had an increase in products sales. A third strength that can be found is the decrease in the values of the line bank indebtedness between 2011 and 2012. It appears that Canadian Tire paid off a significant portion of its loans, which indicates that the company is financially stable. The last strength that can be found on the balance sheet is the decrease in the values of the line short-term borrowings. This indicates that the company is financially stable enough that it does not need as much money found outside sources. Weaknesses: The first weakness that can be identified on the companys balance sheet is the increase in the values of the line merchandise inventory between 2011 and 2012. This may indicate that the company had bought more inventories than it is selling, which is not a good thing. Another weakness that can be found is the significant increase in loans receivable. This suggests that the company might have issues collecting payments owed to it. Cash Flow Statement: Strengths: The first strength that stood out on Canadian Tires cash flow statement was the significant decrease in the values for the line of net (repayment) issuance of short-term borrowings between the years of 2011 and 2012. There was a large negative number in that line which means that the company must have paid off a large amount of its shortterm borrowings. This indicates that the company is financially stable, because it must be in order to pay off those loans. Another strength that can be found on this financial statement is in the line of repayment of long-term debt and finance lease liabilities. Although there was a significant decrease from the year before, it is only noticeable because the value for 2011 was very high. This is still a good indicator, because it also suggests that this company is financially stable. Weaknesses: The first weakness that can be identified on the companys cash flow statement is the increase in the values for the line issuance of loans payable. There is a significant

increase in the values between 2011 and 2012, which could suggest that the company might be having issues collecting what is owed to it.