INSTRUCTIONS: The objectives of this and the other financial statement analysis Canvas problem are: (1) to apply the concepts and techniques we are studying in class to real company data and (2) to understand how financial statement information can help investors, creditors, and other decision makers assess managers decisions and the success of a companys strategies. Well be working primarily with J&J Snack Foods Corp.s 2022 Annual Report (NASDAQ ticker symbol: JJSF), which is available on the companys investor relations website, . Let me know if you have any trouble accessing the report.

REQUIRED: Our focus in this first assignment is on JJSFs profitability during its 2021 and 2022 fiscal years and how its performance in 2022 compared with industry average ratios.

It is critically important to get an overview of a companys strategy and performance before undertaking more detailed quantitative analyses. Briefly summarize JJSFs strategy and overall performance in fiscal 2022 as described on the inside front cover and by its president on the first page of the Annual Report.

Calculate profitability ratios (see text, pp. 13-14 [bottom] to 13-17) for JJSFs fiscal years ending on September 24, 2022 and September 25, 2021. (Hint: You need to use information from the companys 2020 financial statements, which you can find in the companys 2021 annual report on the companys website.)

Based on the ratios you calculated above, does the companys profitability appear to be improving? Explain briefly.

Compare the 2022 profitability ratios you calculated above to those available for the food and tobacco industry averages found on MSN Money (, then click on the Analysis button. Based on those comparisons, does JJSF appear more or less profitable than the industry average? Explain briefly.

To update your profitability analysis to include the first quarter of fiscal 2023 results, review pp. 1-3 of JJSFs January 30, 2023 press release (). Does the companys profitability appear to be improving? Explain briefly.