Question

Sun- Rype Products Ltd. manufactures and markets a variety of fruit juices and fruit snacks, such as Fruit to Go, Squiggles, and FruitSource snack bars. Its products are sold in grocery stores, wholesalers, and drug stores. The following information was reported in a recent annual report:
SUN-RYPE PRODUCTS LTD.
Consolidated Statement of Comprehensive Income
For the years ended December 31
(in thousands of Canadian dollars, unless otherwise stated)
SUN-RYPE PRODUCTS LTD.
Consolidated Statement of Financial Position
(in thousands of Canadian dollars)
Additional information related to 2010 at year- end is as follows:
Shareholders’ equity ..............$ 52,119
Total assets .................82,318
Property, plant, and equipment ..........39,719
Trade and other receivables ............14,260
Inventories .................24,961
Trade and other payables ............18,061
The market price per share was $ 6.23 at December 31, 2011, and $ 6.10 at December 31, 2012.
Required:
1. For Sun- Rype’s past two years, compute the ratios discussed in this chapter. If there is insufficient information, describe what is missing and explain what you would do.
2. Assume that you work in the loan department of City Bank, and you are evaluating an application from Sun-Rype for a two- year loan of $ 10 million to purchase the shares of another competing company. What specific ratios would you consider in your evaluation, and would you lend Sun-Rype the requested amount?


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  • CreatedAugust 04, 2015
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