Instructions:

$$ Use Exhibit A to calculate the Turnover Ratios for $2021$ and $2022$ for West Fraser Timber Co$.$ Ltd$.$

$$ Find the Financial Statements of West Fraser Timber Co$.$ Ltd for $2023$ and compute the Turnover Ratios for $2023.$

$$ Comment on the time trend of the Turnover Ratios from $2021$ to $2023.$ Explain each ratio in $2$ to $3$ sentences.

A$.$ Calculation of Turnover Ratios

$202120222023$

Total Asset Turnover $=$ Sales $/$ Total Assets

Inventory Turnover $=$ Cost of Products Sold $/$ Inventories

Receivables Turnover $=$ Sales $/$ Receivables

B$.$ Explanation of the Turnover RatiosWest Fraser Timber Co$.$ Ltd$.$

Consolidated Balance Sheets

$($in millions of United States dollars, except where indicated$)$

Assets

Current assets

Cash and cash equivalents

Receivables

Income taxes receivable

Inventories

Prepaid expenses

Total Assets

$

West Fraser Timber Co$.$ Ltd$.$

Consolidated Statements of Earnings and $($in millions of United States dollars, except where indicated

Sales

Costs and expenses

Cost of products sold

As at December

$31,2022$

As at December

$31,2021$

$1,162$ $

$350$

$145$

$1,032$

$60$

$1,568$

$508$

$42$

$1,061$

$38$

$9,973$ $

$10,433$

Years Ended

December $31,$

December $31,$

$2022$

$2021$

$

$9,701$ $

$10,518$

$5,142$

$4,645$