The following information is available from the financial statements of Johnson Company

and Walker Company for the year ended December 31, 2022. Both companies operate in the

chemical industry.

	Johnson Company (in millions of CDN. dollars)	Walker Company (in thousands of CDN. dollars)
Net revenue	$ 5,844	$ 38,701
Profit	373	8,380
Total assets, ending	11,603	42,170
Total assets, beginning	11,799	41,786

Instructions:

a) Calculate both companies' asset turnover and return on assets ratios. Round to two decimal

places.

b) Compare each companies' performance based on the ratios from Part a).

c) List two (2) other sources of information that would make analysis of the ratios more useful.

2) Briefly describe the accounting treatment for recording contingent assets under ASPE and IFRS.

3) A client has come to you with the below questions related to goodwill. Your task is to answer

them as concisely as possible for the client.

a) What creates goodwill for a company? Provide two (2) examples.