Eco Play Ltd., with its head office in Vancouver, manufactures enviro-friendly, safe playground equipment for elementary schools.

Question:

Eco Play Ltd., with its head office in Vancouver, manufactures enviro-friendly, safe playground equipment for elementary schools. Its 2020 balance sheet and income statement follow.image

Assume that the share capital is all common and that the weighted average number of shares outstanding in 2020 was 10,808,000.

Required

1. Prepare a common-size balance sheet and income statement on a comparative basis for 2019 and 2020. Identify any significant changes from 2019 to 2020. Round calculations to two decimal places.

2. Calculate the 2020 ratios for Eco Play by completing the schedule below, including a comparison against the industry averages in Exhibit 17.11. Round calculations to two decimal places.

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Analysis Component: As part of its cash flow management strategy, assume Eco Play requires a current ratio of 2:1. Calculate Eco Play?s 2019 current ratio and explain the change from 2019 to 2020.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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