Refer to Exhibit 17.14 and calculate Tia?s Trampolines Inc.?s profitability ratios for 2020 (round calculations to two decimal places). Also identify whether each of Tia?s Trampolines Inc.?s profitability ratios compares favourably (F) or unfavourably (U) to the industry average by referring to Exhibit 17.11.

Analysis Component: Comment on the trend in sales, accounts receivable, cost of goods sold, and accounts payable for the three years 2020, 2019, and 2018.

Exhibit 17.14

Exhibit 17.11

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Tia's Trampolines Inc. Comparative Balance Sheet Information Tia's Trampolines Inc. Income Statement November 30 For Year Ended November 30 (millions of $) (millions of $) 2020 2019 2018 2020 2019 2018 $ 613 $ 200 $ 588 Cash. $3,920 $6,240 $6,560 4,592 Net sales. Accounts receivable (net) . 4,368 275 312 131 Cost of goods sold. 2,744 Gross profit. Plant and equipment (net). $1,176 $1,872 $1,968 1,432 1,480 1,776 Accounts payable. 55 131 184 Operating expenses: $ 296 1,440 $ 296 $ 296 Long-term notes payable. 960 1,280 Depreciation expense. 160 160 160 1,444 Preferred shares. Other expenses. 392 1,248 640 Total operating expenses Common shares. 640 640 688 1,544 1,740 Retained earnings. $ 328 $ 228 Profit from operations $ 488 92 169 96 Interest expense. 58 77 87 The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were Issued and outstanding during each year. Income tax expense 147 99 64 $ 283 $ 152 24 Profit. 77 Ratio Formula Measure of: Liquldity and Efficlency Current assets Current ratio Current labilitles Current debt-paylng ability Cash + Investments (Current) + Net current recelvables Quick ratio Immedlate current debt-paying ability Current labilities Net sales Accounts recelvable turnover Liquidity and efficlency of collection Average net accounts recelvable Accounts recelvable Days' sales uncollected x 365 Liquidity of recelvables Net sales Cost of goods sold Inventory turnover Liquidity and efficlency of Inventory Average Inventory Ending Inventory Days' sales in Inventory x 365 Cost of goods sold Liquidity of Inventory Net sales (or revenues) Total asset turnover Efficlency of assets in producing sales Average total assets Cost of goods sold Accounts payable turnover Efficiency in paylng trade creditors Average accounts payable Solvency Total liabilities Debt ratio x 100% Creditor financing and leverage Total assets Total equity Equity ratio -x 100% Owner financing Total assets Book value of pledged assets Pledged assets to secured liabilitles Protection to secured creditors Book value of secured liabilities Income before Interest and taxes Times Interest earned Protection in meeting Interest payments Interest expense Profitability Profit Profit margin -x 100% Profit in each sales dollar Net sales (or revenues) Gross profit from sales Net sales Gross profit ratio x 100% Gross profit in each sales dollar Profit Return on total assets x 100% Overall profitability of assets Average total assets Profit – Preferred dividends Return on common shareholders' equity x 100% Profitability of owner's Investment Average common shareholders' equlty Equity applicable to common shares Book value per common share Liquidation at reported amounts Number of common shares outstanding Equity applicable to preferred shares Book value per preferred share = Liquidation at reported amounts Number of preferred shares outstanding Profit - Preferred dividends Earnings per share Profit on each common share Weighted-average common shares outstanding Market Market price per share Earnings per share Price-earnings ratio Market value based on earnings Annual dividends per share Market price per share Dividend yleld -x 100% Cash return to each share