The Hydrogenics case is the first in a series of four cases that illustrate a comprehensive analysis of an international corporation. In this case the balance sheet will be analyzed with the income statement and cash flow statement analyzed in cases for Chapters 3 and 4. Chapter 5 will include a comprehensive analysis of Hydrogenics using the information from Chapters 2 through 5. The financial statement analysis template can be accessed and used at www.pearsonhighered.com/fraser. The balance sheet for Hydrogenics and excerpts from the notes to the financial statements are included after the instructions for the case.
Required:
(a) Once you have linked to the template you should see a window that asks whether you want to enable the macros. You must click on "Enable Macros" to use the template. (You may have to change the security setting on your computer in order to use this feature.) Familiarize yourself with the instructions. The tab for the instructions is at the bottom of your screen and is labeled "ReadMe." Print out a copy of the instructions to be used for all Hydrogenics cases in each chapter of the text. Click on the link at the bottom of the screen labeled "Cover." Enter the required data in the template for Hydrogenics with the exception of the check figures for the income statement and the cash flow statement which will be added to the cover sheet when completing Hydrogenics cases in Chapters 3 and 4. Use the instructions to help you locate the necessary information. The amount for "Rent Expense" can be found in Note 20 under the heading "Commitments". Note 27 addresses dividends. Print the cover sheet when it is completed. Save the template on your computer or a disk in order to use it with subsequent problems in later chapters.
(b) Click on the "Balance Sheet" link at the bottom of the template. Input the data from the Hydrogenics balance sheet by clicking on the "Edit" link at top of balance sheet page. Hydrogenics has combined multiple different accounts into one category for several line items on the balance sheet. For example, accounts payable has been included with other current liability accounts in the line item "Trade and other payables". Information in excerpts of Notes 4, 6, 9 and 11 should help you identify the correct amounts to input on the balance sheet. When you have finished inputting the data, review the balance sheet to make sure there are no red blocks indicating that your numbers do not match the cover sheet information check figures. Make any necessary corrections before printing out both your input and the common-size balance sheet that the template automatically creates for you.
(c) Using the Hydrogenics balance sheet, common-size balance sheet and excerpts from the notes, evaluate the asset, liability and equity structure of the firm. Explain trends and changes found on the common-size balance sheet. Assess the sources of liquidity.
(d) Analyze accounts receivable and the allowance for doubtful accounts. The sales growth rate is 33.81% from 2012 to 2013.
(e) Describe the commitments, contingencies and guarantees of Hydrogenics and the significance of these items.

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HYDROGENICS CORPORATION CONSOLIDATED BALANCE SHEETS in thousands of US dollars) December 31 2013 December 31 2012 As Revised (Note 2) Assets Current assets Cash and cash equivalents Restricted cash (note 23) Trade and other receivables (note 4) Grants receivable Inventories (note 5) Prepaid expenses s 11,823 635 5,391 $13,020 3,039 5,769 16 11,848 915 34,607 12,821 979 31,649 Non-current assets Restricted cash (note 23) Property, plant and equipment (note 6) Intangible assets (note 7) Goodwill (note 8) 1,389 1,684 100 5,248 743 1,399 107 5,021 8, Total assets Liabilities Current liabilities Trade and other payables (note 9) Warranty provisions (note 10) Deferred revenue Warrants (note 12) $ 40,070 $ 41,877 13,193 1,912 6,348 1,075 22,528 11,551 1,252 11,706 1,545 26,054 Non-current liabilities Other non-current liabilities (note 11) Non-current warranty provisions (note 10) Non-current deferred revenue Total liabilities 3,095 981 7,305 33,909 2,384 556 85% 37,570 Equity Share capital (note 12) Contributed surplus Accumulated other comprehensive loss Deficit Total equity Total equity and liabilities 333,312 18,449 249) 323,513 17,995 (758) 6,161 $ 40,070 345,351) 336,443) 4,307 $ 41,877