Calculate Taxable Income for 2019 and 2020 in an Excel spreadsheet.

Year ended December 31, 2020 December 31, 2019 Notes 210,485 143,046 Consolidated Statements of Cash Flows For the Cs in thousands Operating activities Net income before income tax Add(deduct) items not involving an outlay of cash: Depreciation of property, plant and equipment and investment properties Amortization of intangible assets Amortization of deferred warranty plan revenue Amortization of premium Net finance costs Gain on sale of property, plant and equipment and investment properties Fair value gain on loan receivable Gain (loss) on sale of debt and equity instruments 17 108,970 2,319 (64,736) 222 18,050 (831) (714) (139) 273,626 118,775 3,920 (71,449) 144 25,472 (424) (528) 5 218,961 15 26 Change in operating working capital Cash received on warranty plan sales Income taxes paid Cash provided by operating activities 217,674 66,130 (46,006) 511,424 (11,627) 66,086 (38,806) 234,614 8 10 Investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds on sale of property, plant and equipment Purchase of debt and equity instruments Proceeds on sale of debt and equity instruments Repayment of loan receivable Interest received Cash used in investing activities (43,493) (995) 1,298 (36,038) 30,586 1,046 4,526 (43,070) (32,931) (1,236) 1,004 (36,497) 22,097 666 3,505 (43,392) 15 13 Financing activities Payment of lease liability Dividends paid Decrease of employee loans-redeemable shares Repurchase of common shares Repayment of term loan interest paid Cash used in financing activities 15 16 14 (71,076) (44,636) 2,499 (48,202) (5,000) (22,336) (188,751) (66,149) (43,313) 5,063 (10,158) (50,000) (27,900) (192,457) Net increase (decrease) in cash and cash equivalents during the year Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 279,603 89,032 368,635 (1,235) 90,267 89,032 Leon's Furniture Limited Consolidated Statements of Changes in Shareholders' Equity Equity component of Accumulated other comprehensive debentures As at December 31, 2019 115,728 3,378 convertible Common shares C$ in thousands income Retained earnings 793,116 Total 915,764 3,542 163,250 163,250 Comprehensive income Net income for the year Other comprehensive income for the year Total comprehensive income 5,321 5,321 5,321 163,250 168,571 (69,977) (3,511) Transactions with shareholders Dividends declared Management share purchase plan (note 15) Convertible debentures (note 14 Treasury Shares (note 16) Share repurchase commitment (note 16] Repurchase of common shares (note 16] Total transactions with shareholders As at December 31, 2020 2,499 51,859 (6) (159) (5,252) 48,941 164,669 (59) (841) (42,885) (113,762) 842,604 (69,977) 2,499 48,348 (65) (1,000) (48,137) (68,332) 1,016,003 (3,511) 31 8,699 Equity component of convertible debentures 3,546 C$ in thousands As at December 31, 2018 Common shares 111,956 Accumulated other comprehensive income (loss) (1,539) Retained earnings 743,399 Total 857,362 106,929 Comprehensive Income Net income for the year Other comprehensive income for the year Total comprehensive income 4,917 4,917 106,929 4,917 111,846 106,929 (43,445) (4) Transactions with shareholders Dividends declared Management share purchase plan (note 15) Convertible debentures (note 14) Share repurchase commitment (note 16] Repurchase of common shares (note 16] Total transactions with shareholders As at December 31, 2019 5,063 100 (443) (948) 3,772 115,728 (43,445) 5,063 96 (5,000) (10,158) (53.444) 915,764 (4,557) 19,210) (57,212) 793,116 (4) 3,542 3,378 Leon's Furniture Limited Consolidated Statements of Comprehensive Income For the $ in thousands Year ended December 31, 2020 December 31, 2019 Net income for the year 163,250 106,929 2,053 135 805 13 Other comprehensive income, net of tax Items that may be reclassified subsequently to profit or loss: Gain on debt instruments arising during the year Reclassification adjustment for gains on disposal of debt instruments Items that will not be reclassified to profit or loss: Gain on equity instruments arising during the year Other comprehensive income for the year Comprehensive income for the year 3,133 5,321 168,571 4,099 4,917 111,846 The accompanying notes are an integral part of these consolidated financial statements. Leon's Furniture Limited Consolidated Statements of Income For the in thousands except share and share amounts Notes Year ended December 31, 2020 December 31, 2019 Revenue Cost of sales Gross profit 17 6 2,220,180 1,236,258 983,922 2,283,411 1,284,826 998,585 Operating expenses Selling, general and administrative expenses Operating profit 18 750,951 232,971 830,495 168,090 19 19 Finance costs Finance income Change in fair value of derivative instruments Net income before income tax (22,413) 4,526 (4,599) 210,485 (28,689) 3,505 140 143,046 20 Income tax expense Net income for the year 47,235 163,250 36,117 106,929 Weighted average number of common shares outstanding Basic Diluted 79,798,908 82,113,879 77,594,496 83,746,040 21 Earnings per share Basic Diluted $2.05 $1.99 $1.38 $1.30 Dividends declared per share Common Convertible, non-voting $0.88 $0.29 $0.56 $0.28 il catamant Notes December 31, 2020 December 31, 2019 cs in thousands) Assets 5 368,635 2,451 73,565 48,634 130,582 4,266 332,072 10,725 11,095 89,032 5,777 65,859 42,286 140,535 3,578 334,443 10,994 9,273 625 702,402 6 7 Current assets Cash and cash equivalents Restricted marketable securities Debt securities Equity securities Trade receivables Income taxes receivable Inventories Deferred acquisition costs Prepaid expenses and other assets Other assets Total current assets Non-current assets Deferred acquisition costs Loan receivable Property, plant and equipment Investment properties Intangible assets Goodwill Deferred income tax assets Total non-current assets Total assets 22 982,025 7 15 8 9 10 10 20 17,614 12,721 714,423 16,212 270,481 390, 120 14,993 1,436,564 2,418,589 16,870 13,053 720,794 16,633 271,810 390,120 14,779 1,444,059 2,146,461 11 12 20 17 13 16 17 14 304,844 25,608 15,479 305,460 73,476 36,163 55,733 256,539 23,274 6,505 151,817 70,601 10,822 57,638 25,000 Liabilities Current liabilities Trade and other payables Provisions Income taxes payable Customers' deposits Lease liability Dividends payable Deferred warranty plan revenue Loans and borrowings Other liabilities Total current liabilities Non-current liabilities Loans and borrowings Convertible debentures Lease liability Deferred warranty plan revenue Redeemable share liability Deferred income tax liabilities Total non-current liabilities Total liabilities 22 3,976 820,739 502,196 14 14 13 17 15 20 90,000 441 327,227 88,604 13 75,562 581,847 1,402.586 70,000 48,788 342,093 85,305 13 82,302 628,501 1,230,697 16 14 Equity Common shares Equity component of convertible debentures Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity 164,659 31 842,604 8,699 1,016,003 2,418,589 115,728 3,542 793,116 3,378 915,764 2,146,461 Year ended December 31, 2020 December 31, 2019 Notes 210,485 143,046 Consolidated Statements of Cash Flows For the Cs in thousands Operating activities Net income before income tax Add(deduct) items not involving an outlay of cash: Depreciation of property, plant and equipment and investment properties Amortization of intangible assets Amortization of deferred warranty plan revenue Amortization of premium Net finance costs Gain on sale of property, plant and equipment and investment properties Fair value gain on loan receivable Gain (loss) on sale of debt and equity instruments 17 108,970 2,319 (64,736) 222 18,050 (831) (714) (139) 273,626 118,775 3,920 (71,449) 144 25,472 (424) (528) 5 218,961 15 26 Change in operating working capital Cash received on warranty plan sales Income taxes paid Cash provided by operating activities 217,674 66,130 (46,006) 511,424 (11,627) 66,086 (38,806) 234,614 8 10 Investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds on sale of property, plant and equipment Purchase of debt and equity instruments Proceeds on sale of debt and equity instruments Repayment of loan receivable Interest received Cash used in investing activities (43,493) (995) 1,298 (36,038) 30,586 1,046 4,526 (43,070) (32,931) (1,236) 1,004 (36,497) 22,097 666 3,505 (43,392) 15 13 Financing activities Payment of lease liability Dividends paid Decrease of employee loans-redeemable shares Repurchase of common shares Repayment of term loan interest paid Cash used in financing activities 15 16 14 (71,076) (44,636) 2,499 (48,202) (5,000) (22,336) (188,751) (66,149) (43,313) 5,063 (10,158) (50,000) (27,900) (192,457) Net increase (decrease) in cash and cash equivalents during the year Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 279,603 89,032 368,635 (1,235) 90,267 89,032 Leon's Furniture Limited Consolidated Statements of Changes in Shareholders' Equity Equity component of Accumulated other comprehensive debentures As at December 31, 2019 115,728 3,378 convertible Common shares C$ in thousands income Retained earnings 793,116 Total 915,764 3,542 163,250 163,250 Comprehensive income Net income for the year Other comprehensive income for the year Total comprehensive income 5,321 5,321 5,321 163,250 168,571 (69,977) (3,511) Transactions with shareholders Dividends declared Management share purchase plan (note 15) Convertible debentures (note 14 Treasury Shares (note 16) Share repurchase commitment (note 16] Repurchase of common shares (note 16] Total transactions with shareholders As at December 31, 2020 2,499 51,859 (6) (159) (5,252) 48,941 164,669 (59) (841) (42,885) (113,762) 842,604 (69,977) 2,499 48,348 (65) (1,000) (48,137) (68,332) 1,016,003 (3,511) 31 8,699 Equity component of convertible debentures 3,546 C$ in thousands As at December 31, 2018 Common shares 111,956 Accumulated other comprehensive income (loss) (1,539) Retained earnings 743,399 Total 857,362 106,929 Comprehensive Income Net income for the year Other comprehensive income for the year Total comprehensive income 4,917 4,917 106,929 4,917 111,846 106,929 (43,445) (4) Transactions with shareholders Dividends declared Management share purchase plan (note 15) Convertible debentures (note 14) Share repurchase commitment (note 16] Repurchase of common shares (note 16] Total transactions with shareholders As at December 31, 2019 5,063 100 (443) (948) 3,772 115,728 (43,445) 5,063 96 (5,000) (10,158) (53.444) 915,764 (4,557) 19,210) (57,212) 793,116 (4) 3,542 3,378 Leon's Furniture Limited Consolidated Statements of Comprehensive Income For the $ in thousands Year ended December 31, 2020 December 31, 2019 Net income for the year 163,250 106,929 2,053 135 805 13 Other comprehensive income, net of tax Items that may be reclassified subsequently to profit or loss: Gain on debt instruments arising during the year Reclassification adjustment for gains on disposal of debt instruments Items that will not be reclassified to profit or loss: Gain on equity instruments arising during the year Other comprehensive income for the year Comprehensive income for the year 3,133 5,321 168,571 4,099 4,917 111,846 The accompanying notes are an integral part of these consolidated financial statements. Leon's Furniture Limited Consolidated Statements of Income For the in thousands except share and share amounts Notes Year ended December 31, 2020 December 31, 2019 Revenue Cost of sales Gross profit 17 6 2,220,180 1,236,258 983,922 2,283,411 1,284,826 998,585 Operating expenses Selling, general and administrative expenses Operating profit 18 750,951 232,971 830,495 168,090 19 19 Finance costs Finance income Change in fair value of derivative instruments Net income before income tax (22,413) 4,526 (4,599) 210,485 (28,689) 3,505 140 143,046 20 Income tax expense Net income for the year 47,235 163,250 36,117 106,929 Weighted average number of common shares outstanding Basic Diluted 79,798,908 82,113,879 77,594,496 83,746,040 21 Earnings per share Basic Diluted $2.05 $1.99 $1.38 $1.30 Dividends declared per share Common Convertible, non-voting $0.88 $0.29 $0.56 $0.28 il catamant Notes December 31, 2020 December 31, 2019 cs in thousands) Assets 5 368,635 2,451 73,565 48,634 130,582 4,266 332,072 10,725 11,095 89,032 5,777 65,859 42,286 140,535 3,578 334,443 10,994 9,273 625 702,402 6 7 Current assets Cash and cash equivalents Restricted marketable securities Debt securities Equity securities Trade receivables Income taxes receivable Inventories Deferred acquisition costs Prepaid expenses and other assets Other assets Total current assets Non-current assets Deferred acquisition costs Loan receivable Property, plant and equipment Investment properties Intangible assets Goodwill Deferred income tax assets Total non-current assets Total assets 22 982,025 7 15 8 9 10 10 20 17,614 12,721 714,423 16,212 270,481 390, 120 14,993 1,436,564 2,418,589 16,870 13,053 720,794 16,633 271,810 390,120 14,779 1,444,059 2,146,461 11 12 20 17 13 16 17 14 304,844 25,608 15,479 305,460 73,476 36,163 55,733 256,539 23,274 6,505 151,817 70,601 10,822 57,638 25,000 Liabilities Current liabilities Trade and other payables Provisions Income taxes payable Customers' deposits Lease liability Dividends payable Deferred warranty plan revenue Loans and borrowings Other liabilities Total current liabilities Non-current liabilities Loans and borrowings Convertible debentures Lease liability Deferred warranty plan revenue Redeemable share liability Deferred income tax liabilities Total non-current liabilities Total liabilities 22 3,976 820,739 502,196 14 14 13 17 15 20 90,000 441 327,227 88,604 13 75,562 581,847 1,402.586 70,000 48,788 342,093 85,305 13 82,302 628,501 1,230,697 16 14 Equity Common shares Equity component of convertible debentures Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity 164,659 31 842,604 8,699 1,016,003 2,418,589 115,728 3,542 793,116 3,378 915,764 2,146,461