Connor Ltd. is a large private company owned by the Connor family. It operates a manufacturing business in northern Ontario. It has applied to the ICB bank for a new loan of $100 million to expand its manufacturing facilities. You are a financial analyst with ICB. You have just been given an assignment to analyze Connor's Year 7 financial statements and to identify any concerns about Connor's performance and financial condition. The following are financial statements for Connor Ltd. for Year 7: Additional Information - Connor uses the straight-line method when depreciating its property, plant, and equipment. - Interest expense was $10,000 for Year 6 and Year 7. Required: (a) Convert Connor's financial statements for both Year 7 and Year 6 into common-sized financial statements using: (Input all amounts as positive values. Round the final answer to the nearest whole dollar. Omit \% sign in your response.) (i) Vertical analysis (ii) Horizontal analysis (ii) Horizontal analysis o) Identify any financial statement items that seem to be peculiar relative to expectations. (Single click the box with the uestion mark to produce a check mark for the five financial statement items that seem to be most peculiar relative to xpectations and double click the box with the question mark to empty the box for the other financial statement items that re not as peculiar relative to expectations.) Cash Accounts recelvable Equipment (b) Identify any financial statement items that seem to be peculiar relative to expectations. (Single click the box with the question mark to produce a check mark for the five financial statement items that seem to be most peculiar relative to expectations and double click the box with the question mark to empty the box for the other financial statement items that are not as peculiar relative to expectations.) Cash Accounts recelvable Equipment Accounts payable Accrued llabilitles Retained earnings Sales Cost of goods Depreclation expense Income tax expense (c) Calculate the current ratio, debt-to-equity ratio, return on assets, and return on equity for both Year 7 and Year 6 . (Enter your answers in thousands. For E.g., 1,000,000 should be entered as 1,000. Round the final answers for all the ratios to two decimal places. Omit $ and % sign in your response.) c) Calculate the current ratio, debt-to-equity ratio, return on assets, and return on equity for both Year 7 and Year 6. (Enter your inswers in thousands. For E.g., 1,000,000 should be entered as 1,000. Round the final answers for all the ratios to two lecimal places. Omit \$ and \% sign in your response.) d) Determine whether Connor's liquidity, solvency, and profitability have improved or deteriorated from Year 6 to Year 7
