Excerpts from the 2013 statement of income, statement of operations, and notes to the financial statements of High Liner Foods Inc. are in Exhibits 2-17A to C. Although it is a Canadian company based in Lunenburg, Nova Scotia, High Liner prepares its financial statements in U.S. dollars. However, the general format and accounting policies are similar to the financial statements you have seen so far.

Required:
Use the exhibits to answer the following questions.
a. In the shareholders€™ equity section, what does the $80,260 thousand in common shares represent?
b. In the shareholders€™ equity section, what does the $90,792 thousand in retained earnings represent?
c. What percentage of High Liner€™s assets was financed by liabilities? Has this percentage increased or decreased from 2012?
d. How much did total assets increase in 2013 over 2012? What were the major areas (or accounts) that accounted for the increase?
e. If High Liner were to pay the income taxes payable, in the current liabilities section, what would be the effect on the basic accounting equation?
f. What was High Liner€™s gross profit as percentage of revenues in 2013? How did this compare with 2012?
g. In the accompanying notes to the financial statements, High Liner discloses separately the revenues and cost of sales for its two business segments: Canadian and U.S. Calculate gross profit for each business segment as a percentage of revenues. Are the segments more or less profitable in 2013 than in 2012? Which segment is more profitable? Base your answers on High Liner€™s note 19, Operating Segment Information (Exhibit 2-17C).

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HIGH LINER FOODS INCORPORATED'S 2013 CONSOLIDATED STATEMENT OF INCOME XET 217A CONSOLIDATED STATEMENT OF INCOME Fifty-two weeks ended December 28 December 29 2012 (in thousands of U.S. dollars, except per share amounts) Revenues Cost of sales Gross profit Distribution expenses Selling, general and administrative expenses Impaiment of property, plant and equipment Business acquisition, integration and other expenses Results from operating activities Finance costs (Income) loss from equity accounted investee, net of income tax Income before income taxes Income taxes Notes 2013 S 947,301 731,884 215,417 53,368 98,902 S 942,631 735,970 206,661 44,511 100,862 13,230 10,741 37,317 36,585 196 536 3,256 59,891 16,329 (86) 43,648 5,442 Current Defered 20 20 12,378 (86) 12,292 $31,356 Total income tax expense (recovery) Net income (1,667) S 2,203 PER SHARE EARNINGS Earnings per common share Basic Diluted 2.07 2.01 Weighted average number of shares outstanding Basic Diluted 15,183,747 15,593,166 15,118,752 15,460,417 HIGH LINER FOODS INCORPORATED'S 2013 CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 28, 2013 December 29 2012 (in thousands of U.S. dollars) ASSETS Current: Notes (note 27) Cash Accounts receivable Income taxes receivable Other financial assets Inventories Prepaid expenses 串1,206 91,334 3,509 1,524 254,072 2,952 354,597 S 65 73,947 5,145 533 222,313 2,991 304,994 Total current assets Non-current: Property, plant and equipment Deferred income taxes Other receivables and miscellaneous assets Intangible assets Goodwill 97,503 4,656 1,906 105,253 111,999 321,317 542 89,268 7,207 2,035 110,631 112,873 20 Total non-current assets Assets classified as held for sale Total assets 322,014 4,819 $676,456 S631,827 LIABILITIES AND SHAREHOLDERS EQUITY Current: 串97,227 103,215 240 459 2,543 S 59,704 101,441 1,614 550 1,165 34,237 1,039 199,750 Bank loans Accounts payable and accrued liabilities 12 Other current financial liabilities Income taxes payable Current portion of long-tem debt Current portion of finance lease obligations 979 Total current liabilities 204,663 Non-current: Long-term debt Other long-term financial liabilities Other long-term liabilities Long-term finance lease obligations Deferred income taxes Future employee benefits 226,929 5,597 1,044 1,647 43,998 7,929 287,144 213,359 1,130 1,532 2,181 45,126 13,791 277,119 1,604 478,473 20 Total non-current liabilities Liabilities directly associated with the assets held for sale Total liabilities Shareholders' equity: 491,807 Common shares Contributed surpluS Retained earnings Accumulated other comprehensive (loss) income 80,260 13,781 90,792 (184) 184,649 75,169 7,719 66,373 4,093 153,354 S631,827 Total shareholders' equity Total liabilities and shareholders' equity $676,456 EXCERPT FROM HIGH LINER FOODS INCORPORATED'S 2013 ANNUAL REPORT NOTE 19 Operating segment information The Company operates in one dominant industry segment, the manufacturing and marketing of prepared and packaged frozen seafood. The Company evaluates performance of the reportable segments on a geographical basis using net in come before financing and taxes from continuing operations. Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third partios. Operations and identifiable assets and liabilities by reporting segment are as follows December 28, 2013 December 29, 2012 Canada U.S Total (Amounts in S000s Sales within geographic region Sales outside of geographic region Total Canada U.S Intercompany sales outside of geographic region(38,277) 12,979) Revenue (excluding intercompany sales) Cost of sales (excluding intercompany sales) Gross profit Distribution expenses Selling, general and administrative expenses Impairment of property plant and equipment Business acquisition integration and other expenses Financing costs Loss) income from equity accounted investe Income (loss) before income tax Income tax expense (recovery) Net income (loss) Add back: $303,589 $642,938 $946,527 $312,884 $627,039 $939,923 38,277 3,753 52,030 8,130 14,474 22,604 341,866 656,691 998,557 321,014 641,513 962,527 (51,256) (8,130) 1,773) 19,903) 303,589 643,712 947,301 312,884 629,747 942,631 230,399 501,485 731,884 243,670 492,300 735,970 73,190 142,227 215,417 69,214 137,447 206,661 14,352 39,016 53,368 14,588 29,923 44,511 36,047 62,855 98,902 38,354 62,508 100,862 - 4,407 8,823 13,230 29 3,2273,256 2,321 8,420 10,741 1,234 15,095 16,329 1,512 35,073 36,585 196 536 (43) (43) (86) 98 98 21,571 22,07743,648 7,934 (7,398) 7,651 4,641 12,292 3,668 5,335 (1,667) $13,920 $17,436 S31,356 $4,266 $2,063) $2,203 Depreciation included in: Cost of sales Distribution Selling, general and administrative expenses 1,761 5,219 6,980 2,363 9,110 11,473 640 1,717 3,329 6,572 9,901 3,837 9,993 13,830 1,170 183 1,331 1,590 469 414 1,407 1,303 Total depreciation Amortization included in: Cost of sales 3 Selling, general and administrative expenses 554,702 5,255 190 5,328 5,518 190 Total amortization 553 4,705 5,258 3,882 11,277 5,159 4,027 15,354 19,381 1,234 15,09 16,329 1,512 35,073 36,585 7,651 4,641 12,292 3,668 5,335) 1,667 5,361 5,551 Total depreciation and amortization Financing costs Income tax expense (recovery) Income before depreciation, amortization, financing and income taxes $26,687 $48,449 $75,136 $13,473 $43,029 $56,502 (1) Geographic regions include Canada, U.S., and Mexico, where Mexico is presented as part of the U.S. segment.