Define the industry in which Cineplex operates and analyze it using Porter’s Five Forces.
Question 2
(20 Marks)
Review the statements and corresponding note disclo
sures for Cineplex. Identify any areas that
might be subject to red flags and explain the reaso
n this might be a red flag. Why might
management have chosen this approach? While there m
ay be many policies that could be
flagged, choose one or two and explain why it/they
are the most important. Adjustments are
NOT required.
Question 3
(20 Marks)
Recast the 2014 and 2013 income statement and balan
ce sheet for Cineplex using the format
covered in class.
Question 4
(24 Marks)
Using the Cineplex financial statements, please pre
pare a ratio analysis for 2014 and 2013. The
analysis should include at least 12 ratios from mul
tiple categories. Explain why you chose each
ratio and discuss the result.
Question 5
(4 Marks)
Other than year-over-year comparison, what other be
nchmarks you might use when applying the
ratio analysis.
Question 6
(10 Marks)
Using the Cineplex financial statements explain the
company’s cash flow. How does operating
cash flow differ from the income statement? Is the
income statement a fair representation of
Cineplex’s ability to generate cash?
Question 7
(10 Marks)
Based on the outcome of your analysis in questions
one to six, tell the Cineplex ‘story.’ Are they
an investment that you would consider based on the
information you have been given?