Lassonde Industries Inc. manufactures and sells fruit and vegetable juices and drinks, as well as specialty...
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Lassonde Industries Inc. manufactures and sells fruit and vegetable juices and drinks, as well as specialty food products under such brand names as Oasis, Fruité, Fairlee, and Canadian Club. The company's products are distributed to wholesalers, supermarkets, and food service providers. The following information was reported in a recent annual report: Sales Cost of sales Selling and administrative expenses (Gains) losses on capital assets LASSONDE INDUSTRIES INC. Consolidated Statement of Income For the Years Ended December 31. (in thousands of Canadian dollars) 2018 $1.593.996 1,166,159 322,621 24 1,488,804 2017 $1.526.148 1,088,076 305.378 (596) 1,392.858 Intangible assets Net defined benefit asset Other long-term assets Goodwill Total assets Liabilities Current Bank overdraft Accounts payable and accrued liabilities Income tax payable Derivative instruments Other current liabilities Current portion of long-term debt Total current liabilities. Derivative instruments 271,423 6.704 1,113 316,814 $1,318,606 $ 210,203 3.148 1.719 1.130 24,580 240,780 199,785 11,888 199,434 $1,055,711 I S 921 4,998 195,578 5,937 5.354 1.270 9,807 222,944 102 3 10 total current maomnes Derivative instruments Net defined benefit liability Long term debt Deferred tax liabilities Other long term liability Total liabilities Shareholders' equity Share capital Contributed surplus Accumulated other reserves Retained earnings Non-controlling interest Total shareholders' equity Total liabilities and shareholders' equity y here to search O 290,780 1,114 1,007 297,267 54,959 1.228 596,355 48,678 1,380 96,466 521.769 33.958 722.251 $1,318.606 102 4,228 158,915 44,560 30.749 48.864 1,382 51.762 477,576 45.378 624,962 $1,055,711 Aa ACE 4 4 DAME VW !!! <239 of 369 > Operating activities Profit Adjustments for: Income tax expense Interest expense Depreciation of property, plant, and equipment and amortization of intangible assets Amortization of unearned discounts and unused tax credits Change in fair value of financial instruments Cost of the defined benefit plans recognized in profit or loss, net of contributions LASSONDE INDUSTRIES INC. Consolidated Statement of Cash Flows (partial) For the Years Ended December 31, (in thousands of Canadian dollars) (audited) (Gains) losses on capital assets Unrealized foreign exchange (gains) losses Type here to search 215 2018 $ 68,015 20,931 14.464 48,752 (279) 1,541 4.841 G 24 853 Abhiyude Katha An 2017 $ 95.498 25,826 11.508 45.214 (550) (19) (2,457) (596) (1.697) 12"C Result Change in non cash operating working capital items Income tax received Income tax paid Interest received Interest paid Settlements of derivative instruments Net cash provided by operating activities Source Lasionde Industries Inc. Annual Report 2018 Additional information related to 2016 at year-end is as follows: Shareholders' equity Total assets Property, plant, and equipment Acennateracaitable $ 585.581 1,103,641 268.829 127034 159,142 (7,822) 790 (23,696) 155 (13,922) 38 $114,685 172,727 5,078 1,570 (24,997) 68 (185) $144,899 Page 729 Aa $ 3 Ata asacts Property, plant, and equipment Accounts receivable Inventories Accounts payable and accrued liabilities 1,105,641 268,829 137,924 217,646 199,819 The company declared and paid a dividend of $2.34 per share during fiscal year 2017 and $3.04 per share during fiscal year 2018. The market price per share was $251.77 at December 31, 2017 and $199.22 at December 31, 2018. Required: 1. Compute the ratios discussed in this chapter for the past two years. If there is insufficient information, describe what is missing and explain what you would do. 2. Assume the role of an investment adviser. A client of yours has the opportunity to invest $1 million in shares of international companies. Prepare a written evaluation of relevant ratios and indicate whether you would recommend to your client that the $1 million be invested in the shares of Lassonde Industries. V Lassonde Industries Inc. manufactures and sells fruit and vegetable juices and drinks, as well as specialty food products under such brand names as Oasis, Fruité, Fairlee, and Canadian Club. The company's products are distributed to wholesalers, supermarkets, and food service providers. The following information was reported in a recent annual report: Sales Cost of sales Selling and administrative expenses (Gains) losses on capital assets LASSONDE INDUSTRIES INC. Consolidated Statement of Income For the Years Ended December 31. (in thousands of Canadian dollars) 2018 $1.593.996 1,166,159 322,621 24 1,488,804 2017 $1.526.148 1,088,076 305.378 (596) 1,392.858 Intangible assets Net defined benefit asset Other long-term assets Goodwill Total assets Liabilities Current Bank overdraft Accounts payable and accrued liabilities Income tax payable Derivative instruments Other current liabilities Current portion of long-term debt Total current liabilities. Derivative instruments 271,423 6.704 1,113 316,814 $1,318,606 $ 210,203 3.148 1.719 1.130 24,580 240,780 199,785 11,888 199,434 $1,055,711 I S 921 4,998 195,578 5,937 5.354 1.270 9,807 222,944 102 3 10 total current maomnes Derivative instruments Net defined benefit liability Long term debt Deferred tax liabilities Other long term liability Total liabilities Shareholders' equity Share capital Contributed surplus Accumulated other reserves Retained earnings Non-controlling interest Total shareholders' equity Total liabilities and shareholders' equity y here to search O 290,780 1,114 1,007 297,267 54,959 1.228 596,355 48,678 1,380 96,466 521.769 33.958 722.251 $1,318.606 102 4,228 158,915 44,560 30.749 48.864 1,382 51.762 477,576 45.378 624,962 $1,055,711 Aa ACE 4 4 DAME VW !!! <239 of 369 > Operating activities Profit Adjustments for: Income tax expense Interest expense Depreciation of property, plant, and equipment and amortization of intangible assets Amortization of unearned discounts and unused tax credits Change in fair value of financial instruments Cost of the defined benefit plans recognized in profit or loss, net of contributions LASSONDE INDUSTRIES INC. Consolidated Statement of Cash Flows (partial) For the Years Ended December 31, (in thousands of Canadian dollars) (audited) (Gains) losses on capital assets Unrealized foreign exchange (gains) losses Type here to search 215 2018 $ 68,015 20,931 14.464 48,752 (279) 1,541 4.841 G 24 853 Abhiyude Katha An 2017 $ 95.498 25,826 11.508 45.214 (550) (19) (2,457) (596) (1.697) 12"C Result Change in non cash operating working capital items Income tax received Income tax paid Interest received Interest paid Settlements of derivative instruments Net cash provided by operating activities Source Lasionde Industries Inc. Annual Report 2018 Additional information related to 2016 at year-end is as follows: Shareholders' equity Total assets Property, plant, and equipment Acennateracaitable $ 585.581 1,103,641 268.829 127034 159,142 (7,822) 790 (23,696) 155 (13,922) 38 $114,685 172,727 5,078 1,570 (24,997) 68 (185) $144,899 Page 729 Aa $ 3 Ata asacts Property, plant, and equipment Accounts receivable Inventories Accounts payable and accrued liabilities 1,105,641 268,829 137,924 217,646 199,819 The company declared and paid a dividend of $2.34 per share during fiscal year 2017 and $3.04 per share during fiscal year 2018. The market price per share was $251.77 at December 31, 2017 and $199.22 at December 31, 2018. Required: 1. Compute the ratios discussed in this chapter for the past two years. If there is insufficient information, describe what is missing and explain what you would do. 2. Assume the role of an investment adviser. A client of yours has the opportunity to invest $1 million in shares of international companies. Prepare a written evaluation of relevant ratios and indicate whether you would recommend to your client that the $1 million be invested in the shares of Lassonde Industries. V
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Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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