Instructions:

Within Loblaw$$s $2021$ Annual Report, locate its Consolidated Statements of Earnings on page $79($which is its Income Statement$),$ its Consolidated Balance Sheets on page $82$ and its Consolidated Statements of Cash Flows on page $83.$

Within Empire$$s $2021$ Annual Report, locate its Consolidated Statements of Earnings on page $49($which is its Income Statement$),$ its Consolidated Balance Sheets on page $48$ and its Consolidated Statements of Cash Flows on page $52.$

Download the Excel template from the assignment folder on Moodle and complete common size Statements of Earnings and Balance Sheets for $2021$ and $2020$ for both companies.

Based on your analysis, answer the following questions $($answers can be noted on this document$).$ Once complete, upload both this Word document and your Excel document into the Assignment $10$C folder on Moodle.

From the Statements of Earnings:

In $2021,$ which company is larger in terms of revenues$/$sales$?$ What is this company$$s revenues$/$sales in $2021$ in millions of dollars?

As a percentage change, how much did Loblaw$$s revenues increase between $2020$ and $2021?$

As a percentage change, how much did Empire$$s sales increase between $2020$ and $2021?$

On a common$-$size basis, which company had the lower cost of sales in $2021?$ What was this company$$s cost of sales as a $\%$ in $2021?$

In $2021,$ on a common$-$size basis, what were Empire$$s net earnings as a percentage of its sales?

In $2021,$ on a common$-$size basis, what were Loblaw$$s net earnings as a percentage of its sales?

From the Balance Sheets:

In $2021,$ on a common$-$size basis, which company had the highest accounts receivable as a $\%$ of total assets? Which was this percentage?

In $2021,$ on a common$-$size basis, which company had the highest inventory as a $\%$ of total assets? Which was this percentage?

In $2021,$ which company had the higher debt ratio? What was its $\%$ of total liabilities to total assets?

In $2021,$ which company had the higher retained earnings as a $\%$ of total assets? What was this $\%?$

From the Statement of Cash Flows:

In $2021,$ which company had the higher quality of earnings $($as described on p$.528$ of your textbook$)?$ How can you tell?

Did Loblaw issue or repay more long$-$term debt during $2021?$ How can you tell?

Did Empire issue or repay more long$-$term debt during $2021?$ How can you tell?

Did Empire$$s cash and cash equivalents increase or decrease during $2021?$ By how much did their cash and cash equivalents increase or decrease?

Did Loblaw$$s cash and cash equivalents increase or decrease during $2021?$ By how much did their cash and cash equivalents increase or decrease?