Eco Play Ltd., with its head office in Vancouver, manufactures enviro-friendly, safe playground equipment for elementary schools. Its 2023 balance sheet and income statement follow.

Assume that the share capital is all common and that the weighted average number of shares outstanding in 2023 was 10,808,000.

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

Analysis Component:As part of its cash flow management strategy, assume Eco Play requires a current ratio of 2:1. Calculate Eco Play’s 2022 current ratio and explain the change from 2022 to 2023.

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Eco Play Ltd. Balance Sheet ($000) As at December 31 2023 2022 Assets Cash Trade and other receivables Inventories Prepaid expenses Other current assets Property, plant, and equipment Goodwill Total assets Liabilities and Equity Trade and other payables Income taxes payable Current loans Other current liabilities Long-term loans Other long-term liabilities Share capital $ 571 $2,928 13,672 14,260 31,794 24,961 Net sales Cost of sales Gross Profit Sales and marketing expenses 579 2,244 46,195 39,719 Contributed surplus Retained earnings Accumulated other comprehensive loss (53) Total liabilities and equity Interest expense Other revenues (expenses) Profit (loss) 450 -0- 1,084 -0- $96,139 $82,318 $19,479 $18,061 -0- 377 11,104 2,512 1,297 639 14,458 5,189 3,422 3,421 17,724 17,724 794 794 27,914 Eco Play Ltd. Income Statement ($000) For Years Ended December 31 2023 Distribution expenses General and admin expenses Operating Profit (Loss) Loss on disposal of property, plant, and equipment 33,601 -0- $96,139 $82,318 2022 $147,529 $ 138,185 126,311 104,867 21,218 33,318 14,721 13,697 7,352 6,410 (7,265) 57 714 7,882 5,315 6,424 -0- 142 2,349 (1,779) $ (5,687) $ 4,503