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Go to the Electrovava Inc. website, or another source, and find the most recent six years of financial statements from their annual reports. Required:
Go to the Electrovava Inc. website, or another source, and find the most recent six years of financial statements from their annual reports. Required: a. Briefly, in less than 100 words, describe the company and the industry they are in. b. Electovava is a Canadian Company located near Toronto. Why do you think their financial statements are expressed in US dollars and not Canadian dollars? c. Present both a table and a graph to show the dollar amounts for Revenue, Cost of Goods Sold, Research and Development Expenses, and Earnings (Loss) from Operations. d. Calculate the C of GS / Revenue ratio, the R & D / Revenue ratio, and Operating Profit/ Revenue ratio for each year. e. What do you notice about revenue changes over the last six years? Explain. f. Do you see a pattern for the C of GS and R&D expenses over the last six years? Explain. Look at the three ratios you have calculated. What do you observe? Have they changed over time? Are they getting better or worse? Explain. g. h. The company provides a detailed explanation in their 2022 annual statements (Footnote 3 (0)) of how development costs may be capitalized as an intangible asset under certain conditions. Does it appear that the company capitalized any development costs in 2022? Explain. i. As you likely have noticed, the company does not show income tax expense on its Income Statement and it did not report any taxable income in the most recent reporting periods. Footnote 23 of the 2022 Financial Statements explains the company's policies and treatment income taxes. The company's reported losses may be carried forward to future reporting periods and the resulting tax benefits may be treated, in certain circumstances, as an income tax asset on the Balance Sheet since it means that future taxes payable will be reduced. Despite the significant loss carry- forwards available to the company, they do not report a deferred tax asset on their Balance Sheet. Explain why. j. As a potential equity investor, what other financial information would you examine before making a decision to invest, or not invest? Identify at least two items of interest.
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