DHX Media Inc. is a Halifax-based developer, producer, and distributor of films and television programs. Excerpts from the company€™s financial statements for the year ended June 30, 2013, are in Exhibits 2-18A to C.

Required:
a. How much cash did DHX have available to use at the end of fiscal 2013?
b. What percentage of DHX€™s assets were financed by shareholders in 2013? Did this represent an increase or decrease relative to 2012? What does this change mean?
c. How much did DHX€™s accounts receivable increase from 2012 to 2013? How did this compare with the change in revenues during the same period? What does this tell you?
d. Determine direct production costs and expense of film and television programs produced as a percentage of DHX€™s revenues in 2013. How did this compare with 2012? Do the same analysis for selling, general, and administrative expenses. Comment on what these trends tell you about the company.
e. Did the company pay dividends during fiscal 2013? How did you determine this?
f. How much property and equipment did DHX acquire in 2013? How did this compare with the proceeds it received from the sale of property and equipment during the year?
g. Calculate the following ratios for fiscal 2013 and 2012. (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
h. Comment on your results in part €œg.€

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DHX MEDIA LTD.'S 2013 CONSOLIDATED BALANCE SHEETS DHX Media Ltd. Consolidated Balance Sheets As at June 30, 2013 and June 30, 2012 (expressed in thousands of Canadian dollars) June 30, 2013 June 30, 2012 Assets Current assets Cash Short-term investments (note 6) Restricted cash (note 13) Amounts receivable (note 7) Prepaid expenses and deposits Investment in film and television programs (note 8) 12,640 19,166 3,323 1278 72,849 2,763 116,994 41,823 1,581 44,163 206,524 110,056 Investment in associates (note 9) Long-term amounts receivable Deferred financing fees Property and equipment (note 10) Long-term investment Intangible assets (note 11) Goodwill (note 12) 3,177 684 4,924 330 27,956 80,802 324,397 8,520 330 2,714 11,800 134,961 Liabilities Current liabilities Bank indebtedness (note 13) Accounts payable and accrued liabilities (note 14) Deferred revenue Other liability Interim production financing (note 13) Current portion of long-term debt and obligations under capital lease (note 13) 5,000 45.095 19,753 445 37,676 3,977 111,946 2,665 14,019 10,647 21,177 1,948 50,456 1,319 3,845 Other liability Long-term debt and obligations under capital lease note 13) Long-term deferred revenue Deferred income taxes (note 17) 45.466 707 3,403 161,522 162,875 441 56,061 78,900 134,961 Shareholders' Equity (note 15) 324,397 EXHIBIT 2-18B DHX MEDIA LTD.'S 2013 CONSOLIDATED STATEMENTS OF INCOME DHX Media Ltd. Consolidated Statements of Income For the years ended June 30, 2013 and 2012 (expressed in thousands of Canadian dollars, except for amounts per share) 2013 2012 Revenues (note 25) Operating expenses (income) Direct production costs and expense of film and television programs produced Expense of acquired libraries Acquisition costs Amortization of property and equipment and intangible assets Development expenses and other Write-down of investment in film and television programs Selling, general and administrative Share of loss of associates Realized loss (gain) on disposals of short-term investment and property and equipment Finance expense (income), net (note 18) 97,26372,647 45,117 47,928 617 6,313 1,696 4,583 3,055 608 31,886 172 (1,419) 1,948 93,959 3,304 2,538 773 515 16,077 146 224 151 68,667 Income before income taxes 3,980 Provision for (recovery of) income taxes (note 17) Current income taxes Deferred income taxes 1,468 (24) 1,444 1,860 147 786 933 Net income for the years 3,047 EKHIBIT 2-18C DHX MEDIA LTD.'S 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS DHX Media Ltd Consolidated Statements of Cash Flows For the years ended June 30, 2013 and 2012 (expressed in thousands of Canadian dollars) 2013 2012 Cash provided by (used in) Operating activities Net income for the years Charges (credit 1,860 3,047 s) to income not involving cash Amortization of property and equipment Amortization of intangible assets Unrealized foreign exchange loss Write-down of investment in film and television programs Realized loss (gain) on sale of property and equipment and short-term investment Share of loss of associates Share-based compensation and warrant expense Interest on promissory notes Deferred tax expense (recovery) 1,937 2,646 2,905 608 (1,419) 172 1,347 1,700 838 57 515 80 146 492 786 7,664 (9,652 (5,494) (10,382) 12,084 (24) 10,033 Net change investment in film and television programs Net change in other non-cash working capital balances related to operations (note 24) Cash provided by (used in) operating activities 10,001) 14,254