The audited annual financial statements of Maple Leaf Foods Inc. for the year ended December 31, 2017, can be found on the company’s website or from SEDAR (www.sedar.com).

Instructions

a. Calculate the liquidity and coverage (solvency) ratios identified in Appendix 5A for both years that are presented in the financial statements.

b. Comment on the company’s financial flexibility.

c. Review the cash flow patterns on the statements of cash flows and comment on the basic sources of the company’s cash and where it is spent.

d. Perform a “horizontal analysis” for the components of working capital. (Calculate each financial statement item for the current year as a percentage of the amount reported for a specific prior year.) Comment on any change in the company’s liquidity.