You have been presented with the following selected information from the financial statements of one of Canada's largest dairy producers, Saputo Inc. (in millions):

Instructions
(a) Calculate each of the following ratios for 2015 and 2014. Industry ratios are shown in parentheses.
1. Current ratio (2015, 1.9:1; 2014, 1.7:1)
2. Receivables turnover (2015, 13.4 times; 2014, 14.0 times)
3. Inventory turnover (2015, 5.9 times; 2014, 6.1 times)
4. Debt to total assets (2015, 58.0%; 2014, 54.0%)
5. Times interest earned (2015, 3.7 times; 2014, 3.0 times)
(b) Based on your results in part P10.7A(a), comment on Saputo's liquidity and solvency.
(c) Saputo had a $1.1-billion operating line of credit, of which $170 million was used at March 31, 2015. Most of the bank debt held by the company was in U.S. dollars, which rose in value relative to the Canadian dollar in 2015. Discuss the implications of this information for your analysis.
(d) Saputo had operating lease commitments totaling $27 million in 2016 and $21 million in 2017. Discuss the implications of this information for your analysis.

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201520142013 ei ai OS Accounts receivable Inventorv Total current assets Total assets Current liabilities Total liabilities $ 785 $ 807$ 625 1,006 933 770 1,962 1,8961,513 6,800 6,357 5,194 1,1791,725 1,227 3,172 3,518 2,888 Net sales Cost of goods sold Interest expense Income tax expense Net income $10,658 $9,223 $7,298 7,688 6,5185,136 73 69 34 237 225 186 613 534 482