Maple Leaf Foods Inc. produces value-added meat products for customers across North America, the United Kingdom, and Japan. Exhibit 4.15 presents the company’s consolidated statements of earnings for the years ended December 31, 2020 and 2019.

Required 

a. Calculate the percentage changes in Maple Leaf’s sales revenue and cost of goods sold between 2019 and 2020. Comment on what you expect the impact of these changes to be on the company’s gross profit percentage for the same period. 

b. Calculate Maple Leaf’s gross profit percentage for 2020 and 2019. Has it improved? 

c. Does Maple Leaf present its expenses by function or by nature? Does this approach require a higher level of management judgement when preparing the statement?

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MAPLE LEAF FOODS INC. Consolidated Statements of Net Earnings Fiscal years ended December 31 (in thousands of Canadian dollars, except per share data) Notes Sales Cost of goods sold Gross margin Selling, general and administrative expenses Earnings before the following: Restructuring and other related costs Other expense Earnings before interest and income taxes Income expenses and other financing costs Earnings before income taxes Income taxes expense Net earnings Earnings per share attributable to common shareholders: Basic earnings per share Diluted earnings per share Weighted average number of shares (millions) Basic Diluted 13 20 7 21 21 2020 $4,303,722 3,600,669 703,053 490,659 212,394 4,284 16,757 191,353 31,480 159,873 46,596 $ 113,277 $ 0.92 $ 0.91 123.1 124.3 2019 $3,941,545 3,350,566 590,979 457,681 133,298 11,004 3,268 119,026 32,031 86,995 12,367 $ 74,628 $ 0.60 $ 0.60 123.6 125.2