What Trends stand out?
Appendix A Kelowna Fine Foods Distribution Ltd. Statement of Earnings For the Years Ended December 31 (prepared under ASPE) (CS'OOOS) Sales Cost of goods sold Direct distribution costs Gross margin Sales and marketing Amortization Employee wages and benefits Store operations occupancy costs General and administrative Fixed lease Contingent lease Total expenses Operating income Finance costs longterm debt Finance costs shortterm debt Income before taxes Income taxes Net Earnings 2019 $ 385,062 $ 218,138 $ 20,216 $146,709 $ 13,504 $ 11,570 $ 61,226 $ 15,430 $ 17,650 $ 20,730 $ 702 $ 140,812 $ 5,897 5,393 140 364 84 280 6969696969 2018 $ 394,891 $ 220,046 $ 19,737 $ 155,109 $ 7,480 $ 10,580 $ 58,828 $ 14,659 $ 16,900 $ 20,125 $ 682 $ 129,254 $ 25,854 5,818 20,036 4,208 15,829 696999969 Page 1 of 4 2017 $ 311,460 $ 171,305 $ 16,750 $ 123,405 $ 6,520 $ 9,520 $ 45,801 $ 12,970 $ 16,520 $ 16,657 $ 567 $ 108,555 $ 14,850 6,243 8,607 1,721 6,886 696969$69 Appendix B Kelowna Fine Foods Ltd. Statement of retained earnings For the Years Ended December 31 (prepared under ASPE) (c$'0005) Balance beginning of year Net earnings Dividends Balance end of year 65696963 Page 2 of 4 2019 2018 74,842 $ 63,014 280 $ 15,829 6,000 $ 4,000 69,123 $ 74,842 6969699 2017 56,128 6,886 63,014 Appendix C Kelowna Fine Foods Ltd. Balance Sheet As at December 31 (prepared under ASPE) (C$'000s) 2019 2018 2017 Assets Current assets: Cash and cash equivalents 500 $ 19,021 $ 29,241 Accounts receivable 21,501 14,110 12,250 Inventories 12,343 $ 11,264 8,700 Prepaid expenses 1,780 1,650 1,410 Total current assets 36,124 46,045 $ 51,601 Property, plant and equipment (net) (note) 207,827 $ 180,407 $ 145,747 Total Assets 243,951 226,452 $ 197,348 Liabilities Current liabilities: Bank - line of credit 11,558 Trade payables and accrued liabilities 17,600 $ 18,330 18,304 Income taxes payable 3,560 1,820 2,570 Current portion of long-term debt 8,500 5,000 3,000 Total current liabilities 41,218 $ 25,150 $ 23,874 Long-term debt - term loan 118,010 $ 110,860 $ 94,860 Total liabilities 159,228 $ 136,010 $ 118,734 Shareholders' Equity Share capital 15,600 $ 15,600 $ 15,600 Retained earnings 69,123 74,842 63,014 Total shareholders' equity 84,723 S 90,442 $ 78,614 Total Liabilities and Shareholders' Equity $ 243,951 226,452 $ 197,348 Property, plant and equipment Opening balance $ 180,407 $ 145,747 $ 142,767 Capital additions 38,990 $ 45,240 $ Amortization 5 (11,570) $ (10,580) $ (9,520) Closing Balance $ 207,827 $ 180,407 $ 145,747 Page 3 of 4Appendix D Kelowna Fine Foods Ltd. Statement of Cash Flows For the Years Ended December 31 (prepared under ASPE) (c$'0005) Cash flow from Operating Activities Net earnings Add back amortization Change in working capital balances: Accounts receivable Inventories Prepaid expenses Trade payables and accrued liabilities Income taxes payable Total cash flow from operating activities Cash flow from Investing Activities Investment in PP&E Cash flow from Financing Activities Increase in bank line of credit Increase (decrease) in term loan Dividends Total cash flow from financing activities Change in cash Opening cash and cash equivalents Closing Cash and Cash Equivalents '69 696969696969 $ $696969 20 19 280 11,570 (7,391 (1,079 (130 (730 1,740 4,260 (38,990) 11,558 10,650 (6,000) 16,208 (18,521) 19,021 500 Page 4 of 4 696969999969 $ $996969 2018 15,829 10,580 (1 ,860) (2,564) (240) 26 (750) 21 ,021 (45,240) 18,000 (4,000) 18,000 (6,219) 29,241 19,021
