The Consolidated Statement of Financial Position 12. What is meant by the term "capital structure"? 13. Calculate and explain the following ratios for the current & the prior year: a. Debt Ratio b. Equity Ratio c. Interest Coverage Ratio Is the change in each ratio favorable or unfavorable? How does this relate to overall risk with respect to investing in the shares of Big Rock? (Hint: Consider the pro's & cons of debt versus equity financing in your discussion.) 14. In the Equity section of the Statement of Financial Position, I see negative numbers for 2018 and 2017 called Accumulated Deficit? What does this mean? 15. What is liquidity and how is Big Rock doing with its liquidity position this year? Is it better or worse than last year? Calculate and explain the following ratios: a. Current Ratio b. Quick Ratio 16. Cash flows from regular operations are dependent on the ability to sell inventory and collect cash on credit sales. How many days on average would it take for Big Rock to sell finished goods inventory and collect cash from credit customers? Calculate and explain the following ratios: a. Days to Sell Inventory b. Average Collection Period Note to Students: Use ending balances for receivables and inventory balances instead of average balances. Also, for 13(a), do not include inventory related to raw materials, containers, or brews in progress as only completed brews would be sold to customers. 17. Note 11 to the financial statements shows an A/R Aging. What is this? Are there any items of concern when you examine the A/R Aging in 2018 relative to the prior year? BIG ROCK BREWERY INC. Comidated Statements of Financial Ption C ASSETS Current LAMUTES AND SHARDHOLDERS EQUITY Current Cap EQUITY C " 2018 2007 BIG ROCK BREWERY INC. Consolidated Statements of Comprehensive incone Revenue 1 LIM 14 Ca 1110 34,743 " 143 1 " M 172 22 MY KAZY 4 J 17639 " " Can and Se acompanying notes to the medsted fecit state n 11,50 134 1378 44218 Exp SM 514 M 3,475 2 See eccompanying notes to the cansalidated financial statements 2018 2007 S 4.74 27AN 30,312 1552 AN 524 101 11 17 0 100 $ 11.00 ROCK EVERY S M 83% Mailings Review View Help Me JUM ROCK SEWERY Ceda - Nabe to the Can 1. SUMMARY OF SONIFICANT ACCOUNTING POLICIES tangible assets are stated at cont les dated amation and accendated pattes. The cast of an tangans of the purchase price p ing the straight line med Ation of these caces when the mes conducts et asent of the resdal kalanes, age at and any changes aring from t are ready An age de recogid f the contund Colidated Statements of the aut any gr their dede The Copen des and worten med f pled by the Corporation prospecialy fter beinfits are expected to are out of the deed the 4. Fadal che les Pr T 2018 2017 16,00 04) (0,0) 40.740 137) hales gres revenues less es be taxes and pencil pe tax charges Federal excise taxes are Provincial parts program include charges paid to precul bquer control boards to cover tribute and other service charges prictal grants ring 2018, by Rock receted grant proceeds of $10,928 2017 $12.00) trough the alberts Small Breves Devel Grant Program fach $10,857 2017 $41.9121 has been included in Pravaliar as props charges COST OF SALES 6. SELLING EXPEN GENERAL AND ASTRATIVE EXPENS FRANCE EXPERI 2003 118,3 $ M 444 A 1179 3,40 SAN 2017 Juny W LAN 8.75 MIN . " 314 Than MA S 04 1304 K 13 30 M P 08 2 TH May SAAD POB . 5 199 106 50 M LAS 6 " A UB M M . " TUM Jum 09 14 TABLE MANAGEMENT'S DISCUSSION AND ANALYS CORPORATE PROFILE Tind Canadan o C 3 " 170 22 3 3 204 PA 226 1300 M M M LM 1.000 m 31278 3 3 3 IN 3 1 10 " MM AD 2017 M 12 ne 24 5. 3 1 M 5 m " 3 204 " E 379 1 Um 1 UN 704 VILM INDUSTRY TRENDS AND CATORS Corpora riday, a