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 €œa,€ 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 €œa€ help you interpret the changes in these ratios? Why or why not?

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NEW FLYER INDUSTRIES INC.'S 2013 CONSOLIDATED STATEMENTS OF NET EARNINGS AND COMPREHENSIVE INCOME ECKEIBIT 2-16A NEW FLYER INDUSTRIES INC. CONSOLIDATED STATEMENTS OF NET EARNINGS AND COMPREHENSIVE INCOME 52 weeks ended December 29, 2013 ( Fiscal 2013") and 52 weeks ended December 30, 2012 (Fiscal 2012") (in thousands of U.S. dollars except per share figures) Fiscal 2013 Fiscal 2012 Restated notes 2.5 2.23) Revenue (note 20) Cost of sales (note 4, 25) Gross profit Sales, general and administration costs and other operating expenses (note 25) Foreign exchange loss (gain) (note 19c) Earnings from operations Unrealized foreign exchange loss on non-current monetary items Loss on exercise of redemption right Fair value adjustment to embedded derivatives Earnings before finance costs and income taxes Finance costs Interest on long-tenm debt and convertible debentures Accretion in carrying value of long-term debt and convertible debentures Other interest and bank charges Fair market value adjustment on interest rate swap $1,199,424 1,078,657 120,767 69.540 118 51,109 2,146 $865,250 791,480 73,770 43,091 (2,812) 33,491 1,403 5,530 1,395 25,163 48,963 11,852 1,432 2,701 8,749 2,208 2,857 532 14,346 34,617 (835) 15,150 10,013 Earnings before income tax expense Income tax expense (note 7) Current income taxes Deferred income taxes recovered 23,849 (15,993) 7,856 S26,761 12,809 (12,086) 723 $ 9,290 Net earnings for the period NEW FLYER INDUSTRIES INC.'S 2013 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION KBTT 2-16B NEW FLYER INDUSTRIES INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at December 29, 2013 and December 30, 2012 in thousands of U.S. dollars) December 29 2013 December 30 2012 Restatec notes 2.5, 24) Assets Current Cash Accounts receivable (note 3, 19c) Inventories note 4) Derivative financial instruments Prepaid expenses and deposits S 11,896 230,315 183,338 11,182 113,460 124,712 7,658 433,207 64,832 4,724 254,078 42,024 Property, plant and equipment (note 5) Embedded derivative instruments Unused investment tax credits (note 7) Deferred tax assets (note 7) Goodwill and intangible assets (note 6) 13,659 55,290 568,864 S1,135,852 23,262 49,332 528,528 $897,224 Liabilities Current Accounts payable and accrued liabilities Income taxes payable Current portion of deferred revenue (note 13) Provision for warranty costs (note 24) Current portion of long-term debt (note 10) Derivative financial instruments (note 19 b,c) Current portion of deferred compensation obligation (note 9) Current portion of obligations under finance leases (note 8) S 212,938 504 57,614 26,102 35,000 740 258 1,283 150,828 6,756 23,430 7,472 40,035 1,857