Access the annual financial statements for Maple Leaf Foods Inc. for the year ended December 31, 2017.

Question:

Access the annual financial statements for Maple Leaf Foods Inc. for the year ended December 31, 2017. These statements are available from the company’s website or from SEDAR (www.sedar.com).

Instructions

a. Explain the securitization that the company is involved in (see Notes 5 and 23). What are the amounts involved and how does the company account for the securitized receivables?

b. Calculate the accounts receivable turnover for 2017 and 2016 and the average age of the accounts receivable at December 31, 2017 and 2016. Comment on your results. For the calculation of turnover and average age, use the closing balance of accounts receivable rather than an average in the formula.

c. Calculate the percentage growth in sales and accounts receivable in 2017 and 2016. Comment on your results.

d. Recalculate your ratios and percentages taking into account the amounts of accounts receivable securitized as indicated in Note 23. Did the securitizations have an effect on your assessment of the company? Explain. Should securitizations be taken into account in the calculations in parts (b) and (c) above, or not taken into account at all?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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