Indigo Books & Music Inc.’s 2017 annual report included a Five Year Summary of Financial Information on page 60, with data for the fiscal years ended March 30, 2013, to April 1, 2017. Portions are reproduced below.

Required

1. Using the Five Year Summary of Financial Information, perform a four-year trend analysis of

a. Total revenues

b. Earnings (loss) before income taxes

c. Net earnings (loss) per common share

Start with 2014 and end with 2017; use 2013 as the base year (100%). Do not calculate anything for losses. Round percentage answers to one decimal place.

2. Evaluate Indigo’s profitability trend during this four-year period.

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For the years ended (millions of Canadian dollars, except share and per share data) April 1, March 30, April 2, 2016 March 28, March 29, 2017 2015 2014 2013 SELECTED STATEMENTS OF EARNINGS INFORMATION Revenues Superstores 702.1 695.3 625.2 607.2 615.2 Small format stores 140.7 140.2 127.8 127.4 137.6 Online 148.2 133.3 114.0 102.0 91.9 Other 28.8 25.4 28.4 31.1 34.1 Total revenues 1,019.8 994.2 895.4 867.7 878.8 Adjusted EBITDA' 52.2 43.1 20.5 0.1 28.5 Earnings (loss) before income taxes 29.0 22.1 (3.2) (26.9) 4.2 Net earnings (loss) 20.9 28.6 (3.5) (31) 4.3 Dividends per share $ 0.33 $ 0.44 Net earnings (loss) per common share $ 0.79 $ 1.10 $(0.14) $(1.21) $ 0.17 SELECTED BALANCE SHEET INFORMATION Working capital 248.1 217.9 198.7 189.7 224.3 Total assets 608.6 584.0 538.4 512.6 569.1 Long-term debt (including current portion) 0.1 0.2 0.8 1.5 Total equity 371.8 344.0 311.1 311.7 350.3 Weighted-average number of shares outstanding 26,84,775 25,949,068 25,722,640 25,601,260 25,529,035 Common shares outstanding at end of period 26,351,484 25,797,351 25,495,289 25,298,239 25,297,389