Managerial Accounting and Finance

Full Answer Section

Sample Solution

I'd be happy to help you analyze Shoppers Drug Mart's financial statements and compare it to Pizza Pizza, but I cannot access external documents due to security restrictions. Please provide the relevant information from Shoppers Drug Mart's annual report, specifically:

• The balance sheet for their most recent fiscal year.
• The income statement for their most recent fiscal year.

Once I have this information, I can calculate the same ratios as you did for Pizza Pizza within the following categories:

(i) Short term Solvency / Liquidity (ii) Long term Solvency / Leverage (iii) Asset Utilization (iv) Profitability (v) Market Value

For each category, I'll offer a brief description of the results and compare them to those of Pizza Pizza. Finally, I'll provide my overall impression of each company based on the analysis and explain which one I think would be a better investment option, justifying my answer with evidence from the provided data.