Maple Leaf Foods Inc. is a major Canadian food processor with three major lines of business: meat

Question:

Maple Leaf Foods Inc. is a major Canadian food processor with three major lines of business: meat products, agricultural feed, and bakery products. The company's 2009 consolidated statement of cash flows is presented in Exhibit 5-20 on page 374, and its consolidated and statement of earnings are presented in Exhibits 10-21A and B on pages 705 and 706.
Required:
Based on these financial statements, answer each of the following questions:
a. Calculate the following ratios for both 2009 and 2008, and comment on the company's profitability and use of leverage. For the 2008 ratios, use the year-end amounts, rather than an average for the year.
i. ROA (broken down into profit margin percentage and total rate) ii. ROE (no preferred shares)
b. Calculate the following operating ratios for both 2009 and 2008 and comment on the results:
i. Current ratio
ii. Quick ratio
iii. turnover
iv. Inventory turnover
v. Operating cash flow to short-term debt
c. Examine Maple Leaf Foods' consolidated statements of cash flows and comment on any significant differences in the company's cash-related activities during 2006 and 2005.
d. Based on your analysis in parts "a" and "b," comment on the company's liquidity.
e. The statement of earnings includes an expense related to "product recall and restructuring cost." Note 11 describes this as the cost related to severance and lease termination in the processed protein operations, and from the consolidation of the pasta and sandwich operations in 2009. In 2008, $102.8 million was related to product recalls and ongoing restructuring costs. By showing the cost as a separate item on the statement of earnings, how is management hoping that investors will interpret this cost? How significant is the cost to the operating results in 2008 and 2009? Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...