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1. Basic Share Price and Financial Information (10 marks)

From each of the companies financial statements assigned to you, please find the following values:

	Canadian National Railway (CNR)	Canadian Pacific Railway (CP)
From The Stock Quote
Current Share Price	155.46	104.87
Current P/E Ratio	19.55	26.22
From The Income Statement
Total Sales and Revenue	14917000	7792000
Total Net Income	4216000	2440000
Basic earnings per common share (EPS)	5.85	3.52
From The Balance Sheet
Value of Cash and Short Term Investments	64000	133000
Value of Accounts Receivable	1213000000	805000000
Value of Total Current Assets	2830000	1210000
Value of Total Assets	43784000	22367000
Value of Current Liabilities	4287000	2292000
Value of Total Liabilities	25743000	15298000
Value of Total Shareholders Equity	18041000	7069000
Total Number of Common Shares Outstanding	723000000	697000000
From The Statement of cash flows
Total Value of Cash Provided by Operating Activities	5923000	2990000
Total Value of Cash Provided by Investing Activities	-4190000	-1803000
Total Value of Cash Provided by Financing Activities	-1903000	-1111000

#2 Company Financial Statement Analysis (10 marks)

From the ANNUAL financial statements provided for each of the two companies; calculate the following ratios for the fiscal year ending Dec. 31st , 2019:

Liquidity ratios

Current Ratio

Net Working Capital

Efficiency and Working Capital Ratios

Accounts Receivable Days

Total Asset Turnover

Leverage Ratios

Total Debt to Assets Ratio

Total Debt to Equity Ratio

Profitability Ratios and Operating Returns

Net Profit Margin

Return on Assets (ROA)

Return on Equity (ROE)

Valuation Ratios

Price-to-Earnings Ratio (show your calculations from the current share price)

Market Capitalization (show your calculations from the current share price)

Insert a copy of your ratio calculations as an appendix

Insert a table listing your calculated ratios for each company reviewed

#3 Analyse and Compare the Companys Financial position (10 marks)

Prepare a brief discussion and analysis of this company in a report format that will contain the following sections:

- Briefly discuss each companys financial position, is it good or bad and explain why (based on the income statement and the profitability ratios)?

-Discuss CNR and CP ratios compared to each other. Which company does better in some areas or all areas?

- Based on your analysis, select which company had the best financial performance for 2019 and support your conclusion.