Question

Lassonde Industries Inc. manufactures and sells fruit and vegetable juices and drinks, as well as specialty food products under such brand names as Oasis, Fruité, Fairlee, and Canadian Club. The company’s products are distributed to wholesalers, supermarkets, and food service providers. The following information was reported in a recent annual report:
LASSONDE INDUSTRIES INC.
Consolidated Statement of Financial Position
For the Years Ended December 31
(in thousands of Canadian dollars)
LASSONDE INDUSTRIES INC.
Consolidated Statement of Cash Flows
For the Years Ended December 31
(in thousands of Canadian dollars) (audited)
Additional information related to 2010 at year end is as follows:
Shareholders’ equity ............... $ 200,846
Total assets .................. 368,858
Property, plant, and equipment ........... 149,843
Accounts receivable .............. 57,934
Inventories .................. 91,833
Accounts payable and accrued liabilities ...... 65,996
The company declared and paid a dividend of $ 1.23 per share during fiscal year 2012 and $ 1.19 per share during fiscal year 2011. The market price per share was $ 64.00 at December 31, 2011, and $ 75.52 at December 31, 2012.
Required:
1. Compute the ratios discussed in this chapter for the last two years. If there is insufficient information, describe what is missing and explain what you would do.
2. Assume the role of an investment adviser. A client of yours has the opportunity to invest $ 1 million in shares of international companies. Prepare a written evaluation of relevant ratios and indicate whether you would recommend to your client that the $ 1 million be invested in the shares of Lassonde Industries.


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  • CreatedAugust 04, 2015
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