MTY Food Group Inc. is a Canadian franchisor and operator of numerous quick service restaurants operating under 40 brand names such as Thai Express, Mucho Burrito, Sushi Shop, Jugo Juice and Manchu Wok. Its annual report for 2018 included the following statements: MTY FOOD GROUP INC. Consolidated Statements of Income For the years ended November 30, (in thousands of Canadian dollars, except per share amounts) 2018 2017 $276,083 $353, 303 Revenue Expenses Operating expenses Depreciation-property, plant, and equipment Amortization-intangible assets Interest on long-term debt Impairment charges on property, plant, and equipment and intangible assets 225,560 2,755 24,749 11,717 182,357 2,724 20,178 10,314 5,531 270,312 1,000 216,573 11 649 2,004 439 Other income (charges) Unrealized and realized foreign exchange gain Interest income Gain on disposal of property, plant, and equipment and intangible assets Loss on revaluation of financial liabilities recorded at fair value through profit and loss 710 1,120 (1,461) (91) 82,900 (409) 3,154 62,664 Income before taxes Income tax (recovery) expense Current Deferred 18,721 (34,812) (16,091) $ 98,991 9,685 3,125 12,810 $ 49,854 Net income Earnings per share Basic Diluted 2.32 4.07 4.06 2.32 Source: MTY Food Group Inc. Annual Report 2018. MTY FOOD GROUP INC. Consolidated Statement of Financial Position At the years ended November 30, (in thousands of Canadian dollars) 2018 2017 Assets Current assets Cash Accounts receivable Inventories Income taxes receivable Other assets Loans receivable Prepaid expenses and deposit 32,304 49,168 3,574 (restated) $ 56,453 34,151 3,281 1,408 1,163 2,817 5,461 104,734 3,109 351 13,081 506,970 226,768 $855,013 692 2,134 7,291 95, 163 5,970 114 18,753 733,660 376,647 $1,230,307 Loans receivable Deferred income tax Property, plant, and equipment Intangible assets Goodwill Liabilities and shareholders' equity Liabilities Current liabilities Accounts payable and accrued liabilities Provisions Income taxes payable Deferred revenue and deposits Current portion of long-term debt 68,700 90,039 24,989 20,122 7,416 211, 266 268, 200 705 119,464 599,635 $ 57,555 75,331 19,273 20,844 4,240 177,243 223,567 1,946 116,931 519,687 Long-term debt Deferred revenue and deposits Deferred income taxes Shareholders' Equity Equity attributable to owners Capital stock Reserves Retained earnings 312,161 1,245 315,985 629,391 1,281 630,672 $1,230,307 114,545 (13,113) 232,192 333,624 1,702 335, 326 $855,013 Equity attributable to non-controlling interest Source: MTY Food Group Inc. Annual Report 2018. Required: 1. For MTY Food Group Inc.'s past two years, compute the ratios given below. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Quality of earnings Solvency ratios: Times interest earned Cash coverage Debt-to-equity Market ratios: Price/earnings ratio Dividend yield
