12345 5 6 Revenue 7 Sales Revenue 8 Rent Revenue 9 Interest Revenue 10 Other Revenues 11 Total revenues 12 13 Operating expenses ROOT LTD. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) 14 Cost of Goods sold 35 Wages expense 16 Salary expense 17 Benefit expense 18 Research and development expense 19 Repairs and maintenance expense 20 Sales and distribution costs expense 21 Depreciation expense-equipment 22 Depreciation expense-vehicles 23 Depreciation expense- furniture 24 Depreciation expense-office building D 1,383 455 117 44 $ 1,999 353 337 114 195 41 81 171 12 2 6 13 C15 A 24 Depreciation expense - office building 25 26 27 Insurance expense Property taxes expense Food and beverage expense 28 Supplies expense 29 Interest expense 30 31 Information technology expense Advertising expense 32 Total operating expenses 33 Profit before income tax 34 Income Tax expense 35 Profit 36 37 Denotes all of these sales were made on credit 38 39 40 41 42- 43. MARCnTe B C D 13 11 67 127 38 23 13 118 1,722 277 69 208 ROOT LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021 CANADIAN DOLLARS (millions of dollars) 42 43 44 ASSETS 45 46 Current assets 47 Cash 48 Short-term investments 49 Accounts receivable 50 51 Inventory Spare parts and supplies inventory 52 Prepaid Maintenance 53 Prepaid expenses 54 Total current assets 55 56 Investments 57 58 Property plant, and equipment A D CANADIAN DOLLARS (millions of dollars). 1,717 857 346 122 66 323 23 $ 3,454 59 Land 142 60 Office Building $ 4,440 61 Less: Accumulated depreciation 577 3,863 62 Equipment 1,583 63 64 Less: Accumulated depreciation Vehicles 451 1.132 8221 65 Less: Accumulated depreciation 178 644 176 94 C15 A B D 822 178 644 144 37 107 5,888 64 65 66 Vehicles Less: Accumulated depreciation Furniture 67 Less: Accumulated depreciation 68 Total property, plant and equipment 69 70 Intangible assets 71 72 Trademark Patent 73 Total intangible assets 74 75 Total Assets 76 77 Liabilities and Shareholders' Equity 78 79 Current Liabilities 62 26 88 9,606 80 Accounts payable 1,006 81 Accrued liabilities 2691 82 Deferred Revenue 482 83 84 85 Total Current Liabilities Current portion of bank loan and mortgage payable Income Tax payable 471 535 2.763 86 C15 XVfx 87 Non-current liabilities A B D 88 Bank loan payable 89 Mortgage Payable 90 Bond payable 91 Total Non-current liabilities 92 Total Liabilities 93 94 Shareholders' Equity 95 Preferred Shares 96 Common Shares 97 Retained Earning 98 Total Shareholders' Equity 99 100 Total liabilities and shareholders' equity 101 102 There were no preferred dividends declared this year. 103 *** The Weighted Average number of common shares outstanding are: 25,000,000 104 The Market price per common share is: 105 106 107 108 20 417 328 2,249 2.994 5.757 305 936 2,608 3,849 9.606 12 Liquidity Working Capital: Current Assets - Current Liabilities Current Ratio: Current Assets Current Liabilities 1 Quick Ratio: 2 23 3 4 Cash + Short-term Investments + Accts Receivable Current Liabilities 15 Receivable Turnover: 16 17 18 Credit Sales Accounts Receivable 19 Average Collection Period: 20 21 22 22 365 Receivable Turnover Root A B Credit Sales Accounts Receivable Average Collection Period: 365 Receivable Turnover B Inventory Turnover: 4 5 Cost of Goods Sold Inventory 6 7 Days in Inventory: 28 365 29 Inventory Turnover 30 31 Solvency 32 33 Debt to Total Assets: 34 35 36 Total Liabilities Total Assets 37 Times Interest Earned 38 39 40 Profit+Interest Expense+Income Tax Expense Interest Expense E 4 A B C Times Interest Earned Profit+Interest Expense+Income Tax Expense Interest Expense Debt to Total Equity: Total Liabilities Total Equity 5 Profitability 6 7 Profit Margin: 8 9 0 Profit Sales $1 Return On Assets (ROA): $2 $3 54 Profit Total Assets 55 Asset Turnover: 56 57 58 Sales Total Assets 59 Earnings Per Share: 60 61 Profit- Preferred Dividends Weighted Average Number of Shares 62 E F B E F G Profit Total Assets Asset Turnover: Sales Total Assets Earnings Per Share: Profit - Preferred Dividends Weighted Average Number of Shares Price Earnings: Market Price per share 5 6 EPS 7 Return on Common Shareholder's Equity 8 $9 Profit Preferred Dividends Common Shareholder's Equity 0 1 72 73 74