1. A friend of yours is interested in investing in the company you are analysing but is unsure of how to measure their return on investment. a. What calculations or ratios would be useful to help them estimate future returns? Please calculate the dividend yield for the most recent year (assume share price is $50, use dividends declared). b. Your friend is also concerned with how quickly the company could liquidate its current assets. Please suggest the best ratio for this and calculate it for the most recent year. c. Explain why you chose the ratio you did. 2. If your friend was interested in the company's ability to generate cash to pay its debts, what line of what statement would be most helpful? Explain why. 3. How many years was the company profitable (if any)? a. Calculate the net profit (or loss) margin for each year. b. Is there a trend over the three years? What would a user of the financial statements be able to tell from comparing these years? c. Compare changes in Net profit/income (or loss) to changes in earnings per share (EPS) for the first two years. Are the two the same? What would cause the two to be different 2 3 LBLCF_Income Statement_Annual_As_Originally_Reported 4 Fiscal year ends in Dec 31 | CAD 2017 2018 2019 5 6 Total Revenue 7 Cost of Goods Sold 8 Gross Profit 9 10 Selling, General and Administrative Expenses 11 Depreciation, Amortization and Depletion 12 Operating Income/Expenses 13 Total Operating Profit/Loss 46,702,000,000 46,693,000,000 48,037,000,000 32,913,000,000 32,537,000,000 33,281,000,000 13,789,000,000 14,156,000,000 14,756,000,000 9,727,000,000 10,641,000,000 9,962,000,000 1,568,000,000 1,592,000,000 2,524,000,000 11,295,000,000 12,233,000,000 12,486,000,000 2,494,000,000 1,923,000,000 2,270,000,000 14 Interest Expense 15 16 Pretax Income 17 Provision for Income Tax 18 Discontinued Operations 525,000,000 564,000,000 747,000,000 1,969,000,000 -443,000,000 1,359,000,000 1,523,000,000 19 Net Income from Operations 1,526,000,000 20 21 23 2222222222 25 Basic EPS 26 Diluted EPS 27 Basic Weighted Average Shares Outstanding 28 Diluted Weighted Average Shares Outstanding 3.88 3.84 393,800,000 397,300,000 30 -606,000,000 -392,000,000 47,000,000 0 800,000,000 1,131,000,000 2.12 2.11 376,700,000 379,300,000 365,400,000 368,400,000 Cash and Cash Equivalents Short Term Investments LBLCF_Balance Sheet_Annual_As_Originally_Reported Fiscal year ends in Dec 31 | CAD 2017 2018 2019 Current Assets Cash, Cash Equivalents and Short Term Investments 2,344,000,000 1,159,000,000 2,398,000,000 1,798,000,000 1,065,000,000 2,341,000,000 546,000,000 94,000,000 57,000,000 4,438,000,000 4,803,000,000 5,076,000,000 4,288,000,000 4,527,000,000 3,600,000,000 224,000,000 1,104,000,000 131,000,000 33,000,000 11,327,000,000 44,000,000 105,000,000 11,637,000,000 11,310,000,000 Inventories Trade and Other Receivables Prepayments and Deposits Assets Held for Sale/Discontinued Operations Total Current Assets Non-Current Assets Net Property, Plant and Equipment Accumulated Depreciation and Impairment Investment Properties and Properties Held for Development Net Intangible Assets Total Long Term Investments Trade and Other Receivables, Non-Current Deferred Tax Assets, Non-Current Pension and Other Employee Benefits, Non-Current Other Non-Current Assets Prepayments and Deposits, Non-Current Total Non-Current Assets Total Assets -10,055,000,000 235,000,000 10,669,000,000 5,931,000,000 12,852,000,000 -8,775,000,000 -8,983,000,000 234,000,000 172,000,000 12,173,000,000 11,740,000,000 11,268,000,000 75,000,000 31,000,000 22,000,000 166,000,000 78,000,000 133,000,000 134,000,000 144,000,000 169,000,000 147,000,000 225,000,000 229,000,000 180,000,000 133,000,000 154,000,000 23,779,000,000 18,516,000,000 24,999,000,000 35,106,000,000 30,153,000,000 36,309,000,000 Liabilities Current Liabilities Payables and Accrued Expenses, Current 6,026,000,000 5,693,000,000 5,628,000,000 Current Debt 750,000,000 971,000,000 743,000,000 Current Portion of Long Term Debt and Capital Lease Provisions, Current 1,635,000,000 283,000,000 1,647,000,000 2,546,000,000 165,000,000 119,000,000 Other Current Liabilities 228,000,000 191,000,000 Total Current Liabilities 8,694,000,000 8,704,000,000 9,227,000,000 Non Current Liabilities Long Term Debt Capital Lease Obligations, Non-Current Provision for Employee Entitlements, Non-Current Other Provisions, Non-Current Tax Liabilities, Non-Current Other Non-Current Liabilities Deferred Liabilities, Non-Current Total Non-Current Liabilities Total Liabilities 9,018,000,000 5,881,000,000 589,000,000 437,000,000 169,000,000 552,000,000 405,000,000 5,971,000,000 7,691,000,000 442,000,000 152,000,000 102,000,000 1,947,000,000 1,539,000,000 19,000,000 16,000,000 140,000,000 315,000,000 13,360,000,000 9,271,000,000 15,761,000,000 22,054,000,000 17,975,000,000 24,988,000,000 1,977,000,000 1,030,000,000 Equity Common Stock Preferred Stock Additional Paid in Capital/Share Premium Retained Earnings/Accumulated Deficit Dividends Declared Reserves/Accumulated Comprehensive Income/Losses Total Equity 7,666,000,000 7,162,000,000 7,044,000,000 0 110,000,000 5,198,000,000 221,000,000 107,000,000 4,580,000,000 221,000,000 100,000,000 3,822,000,000 -1,272,000,000 -1,418,000,000 -1,889,000,000 38,000,000 49,000,000 12,178,000,000 47,000,000 11,321,000,000 13,052,000,000 Common Shares Issued Preferred Shares Outstanding 386,293,941 9,000,000 371,790,967 360,064,475 9,000,000 9,000,000 LBLCF_CashFlow_Annual_As_Originally_Reported Fiscal year ends in Dec 31 | CAD 2017 2018 2019 Cash Flow from Operating Activities, Indirect Cash Generated from Operating Activities Income/Loss before Non-Cash Adjustment Total Adjustments for Non-Cash Items Changes in Operating Capital Interest Received, CFO Indirect Taxes Refund/Paid, Indirect Other Operating Cash Flow Cash Flow from Operating Activities, Indirect Cash Flow from Investing Activities Purchase/Sale and Disposal of Property, Plant and Equipment, Net Purchase/Sale of Intangibles, Net Purchase/Sale of Business, Net Purchase/Sale of Investments, Net Purchase/Sale of Other Non-Current Assets, Net Change in Restricted Cash and Cash Equivalents Other Investing Cash Flow Purchase/Sale of Equity Investments Cash Flow from Investing Activities Cash Flow from Financing Activities Issuance of/Payments for Common Stock, Net Issuance of/Repayments for Debt, Net Issuance of/Repayments for Lease Financing Cash Dividends and Interest Paid Other Financing Cash Flow Issuance of/Payments for Preferred Stock, Net Cash Flow from Financing Activities 4,038,000,000 2,960,000,000 4,536,000,000 1,526,000,000 800,000,000 1,131,000,000 2,321,000,000 3,282,000,000 3,740,000,000 -335,000,000 21,000,000 191,000,000 -1,122,000,000 17,000,000 31,000,000 -866,000,000 -511,000,000 -630,000,000 20,000,000 21,000,000 33,000,000 3,209,000,000 2,501,000,000 3,960,000,000 -979,000,000 -1,010,000,000 -808,000,000 -280,000,000 -324,000,000 -376,000,000 566,000,000 -1,653,000,000 20,000,000 -305,000,000 452,000,000 37,000,000 17,000,000 122,000,000 113,000,000 -800,000,000 800,000,000 -53,000,000 -83,000,000 -75,000,000 -1,034,000,000 -3,296,000,000 -289,000,000 -1,098,000,000 -1,040,000,000 -917,000,000 206,000,000 2,386,000,000 -639,000,000 -822,000,000 -798,000,000 -1,241,000,000 -1,196,000,000 5,000,000 -1,685,000,000 -37,000,000 -32,000,000 68,000,000 -3,606,000,000 Cash and Cash Equivalents, End of Period Change in Cash Effect of Exchange Rate Changes Cash and Cash Equivalents, Beginning of Period Change in Cash As Reported, Supplemental 1,798,000,000 1,065,000,000 1,133,000,000 490,000,000 -727,000,000 65,000,000 -6,000,000 -6,000,000 3,000,000 1,314,000,000 1,798,000,000 1,065,000,000 484,000,000 -733,000,000 68,000,000