Corby Distilleries Limited is a leading Canadian manufacturer and marketer of spirits and imported wines. Corby's portfolio of owned-brands includes some of the most renowned brands in Canada, including Wiser's Canadian whiskies, Lamb's rum, Polar Ice vodka, and McGuinness liqueurs.

Selected financial data (in thousands) for recent years are as follows:

Instructions
1. Determine the following measures for 2011 and 2010, rounding to one decimal place. Industry averages are provided in parentheses after each ratio.
a. Current ratio (2.4:1)
b. Accounts receivable turnover (11.3 times)
c. Inventory turnover (3.2 times)
d. Total asset turnover (0.6 times)
e. Debt ratio (63%)
f. Profit margin (2.8%)
g. Return on assets (1.7%)
h. Return on shareholders' equity (4.6%)
2. Identify whether the liquidity, efficiency, solvency, and profitability ratios have improved or declined since 2010.
3. How does Corby Distillers compare to the industry averages?

Transcribed Image Text:

2009 2011 2010 Statement of Earnings Sales $158,790 $162.230 Cost of sales 71.336 73.061 87,454 Gross profit Operating and other expenses Other expenses 89.169 47,457 46,144 11,543 1,112 Income before income taxes 38,885 31,482 11,462 10.807 Income taxes $ 27,423 $ 20,675 Net income Balance Sheet Current assets $ 96,636 Cash $ 74,685 28,340 Accounts receivable 31.005 28.640 Inventories Other current assets 59,654 60,502 53,987 2.492 2.756 Total current assets 189,787 166,283 Property, plant, and equipment 15,646 15,238 Other assets 78,504 89.720 Total assets $283,937 $271,241 $ 18,285 Current liabilities $ 19,607 Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity 11.889 11.994 252,441 240,962 236,231 $283,937 $271,241