Alberta Playground Inc. produces, markets, distributes, and installs durable playground equipment. It is a new, growing playground distributor in Canada, and is hoping to expand to other provinces shortly. Its head office is in Edmonton, and its 2023 and 2022 balance sheets and income statements follow. Assets Alberta Playground Inc. Balance Sheet ($000) Years Ended March 31 2023 2022 Current assets Cash and cash equivalents Receivables Inventories Non-strategic investment Prepaid expenses and other assets Other current assets Total current assets Portfolio investment Property, Plant, & Equipment Goodwill Trademarks and other intangibles Other assets Total assets Liabilities Current liabilities Bank loans Accounts payable and accrued liabilities Income taxes payable Current portion of long-term debt Total current liabilities Non-Current Liabilities Long-term debt Other liabilities Total liabilities Equity Common shares Retained earnings Total equity Total liabilities and equity $ 78,191 $ 55,519 461,507 367,769 663,944 568,504 51,150 29,704 27,883 140 33,133 28,452 $1,315,808 $1,050,088 0 41,343 1,055,150 1,066,756 850,630 719,495 341,138 318,713 139,243 94,716 $3,701,969 $3,291,111 $ 171,289 $ 62,272 574,829 472,156 199,338 150,077 28,339 8,779 $ 973,795 $ 693,284 379,880 382,190 189,683 154,069 $1,543,358 $1,229,543 $ 624,675 $ 591,749 1,533,936 1,469,819 $2,158,611 $2,061,568 $3,701,969 $3,291,111 Revenues Alberta Playground Inc. Income Statement ($000) Years Ended March 31 Cost of sales, selling and administrative expenses Depreciation and amortization expense Operating profit Interest on long-term debt Other expenses Income taxes Profit Earnings before income taxes 2023 2022 $6,095,470 $5,880,582 5,249,330 5,132,511 106,582 115,256 739,558 632,815 23,421 30,111 14,963 5,861 701,174 596,843 200,215 164,289 $ 500,959 $ 432,554 Assume the common shares represent 204,530 (thousand) shares issued and outstanding for the entire year ended March 31, 2023. Required: 1. Prepare a common-size balance sheet and income statement on a comparative basis for 2023 and 2022. (Round the final percentage answers to 2 decimal places. Negative answers should be indicated by a minus sign.) Required: 1. Prepare a common-size balance sheet and income statement on a comparative basis for 2023 and 2022. (Round the final percentage answers to 2 decimal places. Negative answers should be indicated by a minus sign.) ALBERTA PLAYGROUND INC. Common-Size Comparative Balance Sheet As at March 31, 2023 and March 31, 2022 Assets Current assets Cash and cash equivalents Receivables Inventories Prepaid expenses and other assets Non-strategic investment Other current assets Total current assets Portfolio investment Property, plant and equipment Goodwill Trademarks and other intangibles Other assets Total assets Liabilities Current liabilities Bank loans Accounts payable and accrued liabilities Income taxes payable Current portion of long-term debt Total current liabilities Non-current liabilities Long-term debt Other liabilities Total liabilities Equity Common shares Retained earnings Total equity Total liabilities and equity 2023 2022 (%) (%) ALBERTA PLAYGROUND INC. Common-Size Comparative Income Statement Years ended March 31, 2023 and March 31, 2022 Revenues Cost of sales and selling, general and administrative Depreciation and amortization expense Operating profit Interest on long-term debt Other expenses Profit before income taxes income taxes Profit 2023 2022 (%) (%) 2. Calculate the 2023 ratios for Alberta Playground Inc. including a comparison against the industry averages. (Round the final answers to 2 decimal places.) Ratio Industry Average Favourable or Unfavourable Current ratio :1 1.6:1 Total asset turnover times 2.3 times Debt ratio % 35 % Equity ratio % 65 % Times interest earned times 50 times Profit margin % 14 % Return on total assets % 20% Earnings per share $ 1.79