Sun-Rype Products Ltd., with its head office in Vancouver, manufactures juice-based beverages, fruit snacks, and energy bars. Its 2011 balance sheet and income statement follow.

Assume that the share capital is all common and that the weighted average number of shares outstanding in 2011 was 10,808,000.

Required
1. Prepare a common-size balance sheet and income statement on a comparative basis for 2011 and 2010. Identify any significant changes from 2010 to 2011. Round calculations to two decimal places.
2. Calculate the 2011 ratios for Sun-Rype by completing the schedule below, including a comparison against the industry averages in Exhibit 18.11. Round calculations to two decimal places.

Analysis Component: As part of its cash flow management strategy, assume Sun-Rype requires a current ratio of 2:1. Calculate Sun-Rype’s 2010 current ratio and explain the change from 2010 to2011.

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Sun-Rype Products Ltd. Balance Sheet As at December 31 (In thousands of dollars) Sun-Rype Products Ltd. Income Statement For Years Ended December 31 (in thousands of dollars) 2012 2011 2012 2011 Assets Trade and other receivables.... Prepaid expenses Property, plant and equipment. 13,672 14,260 579 2,244 46,195 1,084 450 -0 39,719 -0 General and admin expenses ......(6,410) (5,315) Loss on disposal of property (57) (714) (142) 2,349 (1,779) Liabilities and Equity Net income (loss)$ (5,687) 4,503 377 2,512 639 5,189 3,421 17,724 794 33,601 Income taxes payable -0 1,297 3,422 794 Accumulated other Total liabilities and equity $96,139 $82.318 Favourable (F) or Unfavourable (U) Ratlo Calculatlon Accounts payable turnover. Debt ratio .. Gross profit ratio..