Question

Consolidated Balance Sheets As at March 31, 2018 As at April 1 2017 (thousands of Canadian dollars) ASSETS Current Cash and cash equivalents (note 6) Short-term investments (note 6) Accounts receivable Inventories (note 7) Prepaid expenses Derivative assets (note B) Assets held for sale (note 11) Total current assets Property, plant, and equipment (note 9) Intangible assets (note 10) Equity investments (note 22) Deferred tax assets (note 12) Total assets 150,256 60,000 6,747 264,586 4,124 1,439 130,438 100,000 7,448 231,576 11,706 266 1,037 482,471 65,078 15,272 1,800 43,981 608,602 487,152 82,314 24,215 4,330 35,563 633,574 170,611 50,396 110 12,852 360 LIABILITIES AND EQUITY Current Accounts payable and accrued liabilities (note 21) Unredeemed gift card liability Provisions (note 13) Deferred revenue Income taxes payable Derivative liabilities (note 8) Total current liabilities Long-term accrued liabilities (note 21) Long-term provisions (note 13) Total liabilities Equity Share capital (note 15) Contributed surplus (note 16) Retained earnings Accumulated other comprehensive income nate ) Total equity Total liabilities and equity 176,479 44,218 166 8,807 152 327 230,149 2,283 45 232,477 234,329 2,378 51 236,758 221,854 11,621 166,807 815 215,971 10,671 145,007 195 371,844 608,602 401,097 633,574

1) Using the Company’s financial statements and related notes, compute the return on assets ratio for both 2018 and 2017

2) Compute the times interest earned ratio for 2018 and 2017. Round your answer to the second decimal.

3) a) What is the percentage of the largest non-current liabilities account to total liabilities for 2018? Record your answer in percentage format and round your answer to two decimal places

b) Using only the statement of financial position, calculate the percentage of the largest current liability account to total liabilities for 2018. Record your answer in percentage format and round to two decimals.

c) What is the quality of earnings ratio for 2018? (Round your answer to the second decimal).

4) What amount of cash was paid to common shareholders in the form of dividends in 2018?

5) a) How much cash did the Company pay for interest during 2018?

b) Did the Company repurchase common shares during the most recent year? If so, how many shares were repurchased?

6) Compute the quick ratio for 2018. If there are “derivative assets”, treat them as a quick asset. Round your answer to the fourth decimal place.

Answer 1

return on assets ratio	net income / total ending assets
	2018	2017
net income	21800	20918
total ending assets	633574	608602
return on assets ratio	3.44%	3.44%
times interest earned ratio	EBIT / interest expenses
	2018	2017
EBIT	26422	25224
interest expenses (from cash flow statement)	10	36
times interest earned ratio	2642.20	700.67

3A

long-term accrued liabilities

2283

0.98%

3B

accounts payable and accrued liabilities

176479

75.91%

3C

quality of earnings ratio	net cash from operating activities / net income
net cash from operating activities	28378
net income	21800
quality of earnings ratio	1.30