Blue Jay Metals Inc. is a small Canadian manufacturer of parts used in the construction of machinery. For the year ended December 31, 2014, Blue Jay Metals prepared two sets of financial statements-one in accordance with ASPE for its Canadian business associates, the other in accordance with IFRS, which it requires for doing business overseas. It is considering adopting IFRS as a one-time change so that it no longer has to prepare two sets of statements. Excerpts from Blue Jay Metals Inc.'s financial statements appear below.

ASPE-Based Financial Statements:

Key information from the 2014 Consolidated Statement of Earnings:
Net income = $91,000
Interest expense = $94,000
IFRS-Based Financial Statements:

Key information from the 2014 Consolidated Statement of Comprehensive Income:
Net Income = $31,000
Interest expense = $94,000
Notice that the presentation of the financial statements differs somewhat, as well as some of the recorded balances. These differences arise because ASPE and IFRS rules measure certain transactions differently. However, the focus of this question is the impact on ratios of using a different set of accounting rules. Investors need to understand that if two companies in the same industry are being compared, their results could be very different depending upon whether IFRS or ASPE is used in the preparation of the financial information.
Required
1. Compute the following ratios for 2014 based on Blue Jay Metals' financial statements prepared in accordance with ASPE.
a. Current ratio b. Acid-test ratio c. Debt ratio d. Rate of return on total assets
2. Compute the same ratios as in Requirement 1 for 2014 based on Blue Jay Metals' IFRS financial statements.
3. What effect did the different standards have on the results? Should Blue Jay Metals switch to IFRS?

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Blue Jay Metals Inc. Consolidated Balance Sheet December 31, 2014 and 2013 ($ amounts in thousands) Assets Cash Securities Accounts receivable, net Inventory December 31, 2014 December 31, 2013 s 40,000 85,000 100,000 375,000 600,000 600,000 $1,200,000 $ 30,000 85,000 95,000 370,000 580,000 520,000 $1,100,000 Total current assets Plant and equipment, net Total assets Liabilities Accounts payable Bank loans Accrued expenses s 100,000 125,000 25,000 250,000 500,000 750,000 $ 110,000 135,000 25,000 250,000 Total current liabilities Bonds payable 700,000 Shareholders' equity Shareholders' equity Total Habilitiles and shareholders equity 450,800400,000 $1, 200,000 $1,100,000 Blue Jay Metals Inc. Consolidated Statement of Financial Position December 31, 2014 and 2013 $ amounts in thousands) Assets Non-current assets Investments Plant and equipment, net December 31, 2014 December 31, 2013 $ 70,000 S 85,000 750,000 835,000 Total non-current assets 920,000 Current assets 40,000 5,000 100,000 75,000 520,000 30,000 3,000 Marketable securites Inventory 370,000 Total current liabilities Total assets Equity and Liabilities Total equity Non-current liabilities Bonds payable Current liabilities Accounts payable and other Bank loans $1,333,000 Sa S 505,000 500,000 550,000 100,000 125,000 35,000 260,000 760,000 $1,440,000 110,000 135,000 33,000 278,000 828,000 $1,333,000 Total current liabilities Total liabilities Total equity and liabilities