Question

Winnipeg-based New Flyer Industries Inc. is one of North America’s largest manufacturers of heavy-duty transit buses. Excerpts from its 2013 financial statements are in Exhibits 2-16A and B.
Required:
Use the financial statements to answer the following questions.
a. Calculate the growth in the following accounts from 2012 to 2013:
i. Revenue
ii. Cost of Sales
iii. Net Earnings
iv. Total Assets
v. Total Equity
Would you expect each of these accounts to grow at the same rate? Why or why not? Comment on the growth rates you calculated.
b. Based on your analysis from part “a,” did the equity investors finance more of the company in 2013 than they did in 2012?
c. Calculate the following ratios for each of the two years presented. (Note that, in order to be able to calculate these ratios for each of the years, you will have to use the total assets for each year and the total shareholders’ equity for each year in your ratios, rather than average total assets and average shareholders’ equity.)
i. Profit margin ratio
ii. Return on assets
iii. Return on equity
Comment on your results. Do the results from part “a” help you interpret the changes in these ratios? Why or why not?


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  • CreatedJune 11, 2015
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