Analysis Case 18-7 Analyzing financial statements; price-.arnings ratio; dividend payout ratio LO18-10 AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2018 and 2017 comparative income statements and balance sheets for AGF. The market price of AGF's common stock is $47 during 2018. The financial data we use are from actual financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the mumbers and dates have been modified slightly to disguise the company's identity.) Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate return relative to resources devoted to company operations Page 1037