Reading and Interpreting 6-4 a High Liner Foods Incorporated processes and markets prepared frozen seafood throughout Canada, the United States, and Mexico under the High Liner and Fisher Boy brands. It also produces private label products, and supplies restaurants and institutions. Exhibits 6.10A and 6.10B contain financial statements that were included in the company's 2016 annual report: EXHIBIT 6.10A High Liner Foods Incorporated's 2016 Consolidated Statement of Income HIGH LINER FOODS INCORPORATED Consolidated Statement of Income (in thousands of United States dollars, except per share amounts) Fifty-two weeks ended December 31, January 2, Notes 2016 2016 Revenues $956,016 $1,001,507 Cost of sales 753,179 799,843 Gross profit 202,837 201,664 Distribution expenses 43,610 48,037 Selling, general and administrative expenses 96,978 93,597 Impairment of property, plant and equipment 5 2,327 Business acquisition, integration and other expenses 4,787 7,473 Results from operating activities 55,135 52,557 Finance costs 25 14,296 16,247 Income before income taxes 40,839 36,310 Income taxes Current 17 8,737 5,707 Deferred 17 (848) 1,022 Total income tax expense 7,889 6,729 Net income $ 32,950 $ 29,581EXHIBIT 6.10B High Liner Foods Incorporated's 2016 Consolidated Statement of Financial Position HIGH LINER FOODS INCORPORATED Consolidated Statement of Financial Position (in thousands of United States dollars) December 31, January 2, Notes 2016 2016 ASSETS Current Cash $ 18,252 $ 1,043 Accounts receivable 75,190 76,335 Income taxes receivable 3,783 5,218 Other financial assets 22 1,705 6,453 Inventories 7 252,118 261,771 Prepaid expenses 3,340 2,051 EXHIBIT 6.10B High Liner Foods Incorporated's 2016 Consolidated Statement of Financial Position (continued) December 31, January 2, Notes 2016 2016 Total current assets 354,388 352,871 Non-current Property, plant and equipment 8 111,322 115,879 Deferred income taxes 17 2,290 2,495 Other receivables and miscellaneous assets 22 864 1,683 Intangible assets 97,176 102,315 Goodwill a 118,101 117,824 Total non-current assets 329,753 340,196 Total assets $684,141 $693,067LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Bank loans 10 $ 621 $ 17,158 Accounts payable and accrued liabilities 11 135,272 120,336 Provisions 12 386 263 Other current financial liabilities 22 1,626 817 Other current liabilities 416 Income taxes payable 851 2,242 Current portion of long-term debt 13 11,816 Current portion of finance lease obligations 13 721 1,015 Total current liabilities 139,893 153,647 Non-current liabilities Long-term debt 13 266,327 281,017 Other long-term financial liabilities 22 196 89 Other long-term liabilities 888 483 Long-term finance lease obligations 13 702 715 Deferred income taxes 17 45,183 46,966 Future employee benefits 14 8,190 9,631 Total non-current liabilities 321,486 338,901 Total liabilities 461,379 492,548 Shareholders' equity Common shares 15 86,094 85,282 Contributed surplus 14,654 13,999 Retained earnings 146,340 125,843 Accumulated other comprehensive loss (24,326) (24,605) Total shareholders' equity 222,762 200,519 Total liabilities and shareholders' equity $684,141 $693,067(a) Calculate High Liner's following ratios for both 2016 and 2015: (Round current and quick ratios to 2 decimal places, e.g. 15.25, accounts receivable turnover rate and average collection period to 1 decimal place, e.g. 15.2.) i. Current ratio ii. Quick ratio iii. Accounts receivable turnover (use the balance of accounts receivable at each year end for this calculation, rather than average balances) iv Average collection period 2016 2015 Current ratio Quick ratio Accounts receivable turnover rate times times . .. .. .... Average collection period days days Question Attempts: 0 of 3 used