Question: Saputo Inc is a Montreal based producer and distributor of dairy

Saputo Inc. is a Montreal-based producer and distributor of dairy products, including cheese and yogurt products. According to the company‚Äôs website, it is ‚Äúone of the top ten dairy processors in the world.‚ÄĚ Exhibit 6-12 shows the company‚Äôs 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.
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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