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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
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. Omit $ sign in your response. Round the final answer to the nearest whole dollar.) (i) Vertical analysis (ii) Horizontal analysis 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 decimal laces. Omit \$ sign in your response.)
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