Alberta Playground Inc. produces, markets, distributes, and installs durable playground equipment. It is a new, growing playground distributor in Canada, and is hoping to expand to other provinces shortly. Its head office is in Edmonton, and its 2023 and 2022 balance sheets and income statements follow.

Assume the common shares represent 203,830 (thousand) shares issued and outstanding for the entire year ended March 31, 2023.

Required1. Prepare a common-size balance sheet and income statement on a comparative basis for 2023 and 2022. Identify any significant changes from 2022 to 2023. Round calculations to two decimal places.2. Calculate the 2023 ratios for Alberta Playground Inc. by completing the schedule below, including a comparison against the industry averages in Exhibit 17.11. Round calculations to two decimal places.

Analysis Component:Alberta’s management monitors changes to the debt ratio closely to help maximize the company’s return on total assets. Explain how a strategy for keeping a strong balance sheet by managing debt loads helps maintain the desired return on total assets.

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Alberta Playground Inc. Balance Sheet ($000) Years Ended March 31 2023 2022 Assets Current assets Cash and cash equivalents Receivables Inventories Prepaid expenses and other assets Non-strategic investment Other current assets Total current assets Portfolio investment Property, plant, and equipment Goodwill Trademarks and other intangibles Other assets Total assets Liabilities Current liabilities Bank loans Accounts payable and accrued Income taxes payable Current portion of long term debt Total current liabilities Non-current liabilities Long-term debt Other liabilities Total liabilities Equity Common shares Retained earnings Total equity Total liabilities and equity Revenues $ 77,491 460,807 662,194 50,940 27,743 32,923 $1,312,098 Earnings before income taxes Income taxes Profit 0 1,027,150 847,830 339,038 138,193 $3,664,309 28,199 $971,205 378,480 188,983 $ 1,538,668 $ 54,819 367,069 566,754 29,494 0 $ 170,589 $ 61,572 573,779 471,106 198,638 149,377 28,242 $1,046,378 Cost of sales, selling and administrative expenses Depreciation and amortization expense Operating profit Interest on long-term debt Other expenses 41,343 1,038,756 716,695 316,613 93,666 $3,253,451 8,639 $ 690,694 380,790 Alberta Playground Inc. Income Statement ($000) Years Ended March 31 2023 2022 $6,025,470 $5,810,582 153,369 $1,224,853 $ 617,675 $ 584,749 1,507,966 1,443,849 $2,125,641 $2,028,598 $3,664,309 $3,253,451 5,235,330 5,118,511 104,832 113,506 685,308 578,565 23,211 29,901 14,263 647,834 5,161 543,503 196,715 160,789 $ 451,119 $ 382,714