Managerial Accounting & Finance

First, choose two public companies that are listed on the TSX. WE HAVE CHOSEN PIZZA PIZZA AND SHOPPERS DRUG MART

About Us – Pizza Pizza

Our company | Shoppers Drug Mart

Second, obtain the most recent annual financial statements for each company. You can get this either from the companies’ websites (usually under “Investor Relations” or from

www.sedar.com

). Print off the balance sheet and the income statement for each company.

Third, calculate 3 ratios (in each of the five Ratio Categories listed below), for each company and briefly describe the results for each section (a brief paragraph for each section):

(i) Short term Solvency / Liquidity

(ii) Long term Solvency / Leverage

(iii) Asset Utilization

(iv) Profitability

(v) Market Value

Finally, Briefly give your overall impression of each company based on your analysis and choose which one you think would make a better investment option. Explain your answer.