CONSOLIDATED BALANCE SHEETS 44 TORSTAR 2004 (thousands of dollars) DECEMBER 31, 2004 AND 2003 (See accompanying notes) J. Spencer Lanthier Director John R. Evans Director On Behalf of the Board Assets 2004 2003 Current: Cash and cash equivalents $47,229 $53,660 Receivables (note 2) 247,942 245,697 Inventories 35,236 38,041 Prepaid expenses 68,250 73,971 Future income tax assets (note 10) 23,851 24,434 Total current assets 422,508 435,803 Property, plant and equipment (net) (note 3) 392,141 401,172 Investment in associated businesses (note 4) 22,954 21,074 Goodwill 499,637 488,258 Other assets (note 5) 114,731 100,930 Future income tax assets (note 10) 58,056 64,530 Total assets $1,510,027 $1,511,767 Liabilities and Shareholders’ Equity Current: Bank overdraft $6,414 $3,243 Accounts payable and accrued liabilities 214,352 204,779 Income taxes payable 23,917 19,032 Total current liabilities 244,683 227,054 Long-term debt (note 6) 317,829 387,800 Other liabilities (note 7) 83,177 87,174 Future income tax liabilities (note 10) 70,677 64,684 Shareholders’ equity: Share capital (note 8) 369,140 349,921 Contributed surplus 2,442 878 Retained earnings 425,787 395,758 Foreign currency translation adjustment (3,708) (1,502) 793,661 745,055 Total liabilities and shareholders’ equity $1,510,027 $1,511,767 Commitments and contingencies (note 16) TORSTAR CORPORATION (INCORPORATED UNDER THE LAWS OF ONTARIO)