Saputo Inc. is a Montreal-based producer and distributor of dairy products, including cheese and yogurt products. According to the company€™s website, it is €œone of the top ten dairy processors in the world.€ Exhibit 6-12 shows the company€™s statement of financial position for the year ended March 31, 2014.

The company€™s revenues for the year ended March 31, 2014, were as shown in Exhibit 6-12B.

Required:
a. Calculate Saputo€™s following ratios for both 2014 and 2013:
i. Current ratio
ii. Quick ratio
iii. Accounts receivable turnover (use the balance of accounts receivable at each year end for this calculation, rather than average balances)
iv. Average collection period
b. Comment on the results of the above ratio calculations and any significant trends they reveal.

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EXHRT 6-12A SAPUTO INC.'S 2014 CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (in thousands of CDN dollars As at ASSETS Current assets March 31, 2014 March 31, 2013 $ 39,346 807,409 933,232 30,867 84,992 1,895,846 1,928,761 1,954,691 484,830 79,968 12,796 6,356,892 Cash and cash equivalents Receivables Inventories (Note 4) Income taxes (Note 14) Prepaid expenses and other assets $43.177 624,553 770,158 2,786 71,882 1,512,556 Property, plant and equipment (Note 6) Goodwill (Note 7) Trademarks and other intangibles (Note 7) Other assets (Note 8) Deferred income taxes (Note 14) Total assets 1,617,195 1,569,592 454,876 29,962 9,459 $ 5,193,640 LIABILITIES Current liabilities Bank loans (Note 9) Accounts payable and accrued liabilities Income taxes (Note 14) Current portion of long-term debt (Note 10) 310,066 897,222 124,206 393,600 $ 181,865 748,318 144,064 152,400 1,226,647 1,395,900 74,101 191,320 $ 2,887,968 1,725,09 Long-term debt (Note 10) Other liabilities (Note 11) Deferred income taxes (Note 14) Total liabilities 1,395,694 48,396 348,548 $ 3,517,732 EQUITY Share capital 703,111 242,282 1,830,911 2,776,304 62,856 $ 2,839,160 $ 6,356,892 663,275 38,049 1.604,348 2,305,672 Reserves Retained earnings Equity attributable to shareholders of Saputo Inc. Non-controlling interest (Note 16) Total equity Total liabilities and equity $2,305,672 $5,193,640 EXTRACT FROM SAPUTO INC.'S 2014 CONSOLIDATED STATEMENTS OF EARNINGS EXHIBIT 6-12B CONSOLIDATED STATEMENTS OF EARNINGS (in thousands of CDN dollars, except per share amounts) Years ended March 31 Revenues 2014 2013 $9,232,889 $7,297,677