Instructions:

Within Loblaws 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 Empires 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 10C folder on Moodle.

From the Statements of Earnings:

1. In 2021, which company is larger in terms of revenues/sales? What is this companys revenues/sales in 2021 in millions of dollars?

2. As a percentage change, how much did Loblaws revenues increase between 2020 and 2021?

3. As a percentage change, how much did Empires sales increase between 2020 and 2021?

4. On a common-size basis, which company had the lower cost of sales in 2021? What was this companys cost of sales as a % in 2021?

5. In 2021, on a common-size basis, what were Empires net earnings as a percentage of its sales?

6. In 2021, on a common-size basis, what were Loblaws net earnings as a percentage of its sales?

From the Balance Sheets:

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

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

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

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

From the Statement of Cash Flows:

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

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

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

14. Did Empires cash and cash equivalents increase or decrease during 2021? By how much did their cash and cash equivalents increase or decrease?

15. Did Loblaws cash and cash equivalents increase or decrease during 2021? By how much did their cash and cash equivalents increase or decrease?

The resource from Loblaw 2021 annual report and Empire 2021 annual report, then use excel for calculating the Loblaws earning statement, the Empire's earning statement, balance sheet for Loblaws and Empire.