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, 2016, and 2015.

EXHIBIT 4.15 Maple Leaf Foods Inc.’s 2016 Consolidated Statements of Earnings

Required

a. Calculate Maple Leaf’s gross profit percentage for 2016 and 2015. Has it improved?

b. 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 2016 2015 Sales $3,331,812 $3,292,932 Cost of goods sold 2,740,866 2,911,791 $ 381,141 $ 590,946 Gross margin Selling, general and administrative expenses 288,055 324,820 $ 266,126 $ 93,086 Earnings before the following: Restructuring and other related costs (6,570) (33,825) 12 Other income (expense) (3,596) (1,899) 18 $ 255,960 $ 57,362 Earnings before interest and income taxes Income expenses and other financing costs 6,367 19 4,711 $ 249,593 $ 52,651 Earnings before income taxes Income taxes expense 20 67,891 11,071 $ 181,702 $ 41,580 Net earnings Earnings per share attributable to common shareholders: 21 Basic earnings per share 1.35 0.30 Diluted earnings per share 0.29 1.32 Weighted average number of shares (millions) 21 Basic 134.2 140.2 Diluted 137.6 141.7