m #2 #3 menace? Using the nancial statements for Saputo lnc., calculate the following ratios for 2021. If needed, you may assume a statutory income tax rate of 25%: (14 points) Current Ratio Quick Ratio PPE Turnover, in days Accounts Receivable Turnover, in days Return on Assets Return on Equity Times Interest Earned By what percent did Saputo's Basic Earnings Per Share change during the year? What do you think was the main cause(s) of this change? Explain. (4 points} As a major international cheese manufacturer and distributor based in Quebec, Saputo is subject to several potential risks. Certainly, amajor one over the last few years has been the COVID 19 pandemic. Identify and discuss two specic consequences of the pandemic that would affect a company like Saputo. Also identify and discuss another potential risk, not pandemic related, that would likely be an important consideration for the company. (6 points) CONSOLIDATED INCOME STATEMENTS {in millions of CON dollars. except pershare amounts) Yeas ended March 31 2021 2020 Revenues {Note 24] 5 14.2933 5 14.9435 Operating costs excluding depreciation. amortization. 'riventory revaluation resulting from 3 1115111855 acquisition. and restrucluring costs [Note 5} 12323.0 13,475.? Earnings before interest. income taxes. depreciation. amortization. impairment of intangible assets. inventory revaluation resulting from a business acquisition. and acquisition and restructuring costs 1.4?03 1.4613 Depreciation and amortization 515.0 46?.2 Impairment of intangible assets {Note 8) 19.0 Inventory revaluation resulting from a business acquisition {Note 18) 40.1 Acquisition and reskucturing costs [Note 23) (3.2) 46.0 Financial charges [Note 14) 96.? 115.2 Earnings before income taxes 843.41 799.3 Income taxes [Note 15) 21?.8 216.5 Net earnings 5 525.8 5 582.3 Net earnings per share [Note 16) Basic 5 1.53 s 1.46 Diluted 5 1.52 S 1.45 The accompanying notes are an integral part of these consolidated nancial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of CDN dollars) Years ended March 31 2021 2020 Cash flows related to the following activities: Operating Net earnings 625.6 $ 582.8 Adjustments for: Stock-based compensation 36.2 33.5 Financial charges (Note 14) 96.7 115.2 Income tax expense 217.8 216.5 Depreciation and amortization 515.0 467.2 Impairment of intangible assets (Note B) 19.0 (Gain) on disposal of property, plant and equipment (6.4) (2.0) Impairment charges related to plant closures 12.9 Inventory revaluation resulting from a business acquisition 10.1 Foreign exchange loss (gain) on debt 44.4 (47.2) Share of joint venture earnings, net of dividends received (0.9) 11.5 Difference between funding of post-employment benefit plans and costs (1.4) (8.3) Changes in non-cash operating working capital items (233.3) (106.7) Cash generated from operating activities 1,312.7 1,315.5 Interest and financial charges paid (111.3) (139.0) Income taxes paid (123.3) (139.6) Net cash generated from operating activities $ 1,078.1 $ 1,036.9 Investing Business acquisitions, net of cash acquired (1,929.6) Additions to property, plant and equipment (379.5) (509.9) Additions to intangible assets (53.5) (66.4) Proceeds from disposal of property, plant and equipment 45.6 1.0 Net cash used for investing activities $ (387.4) $ (2,494.9) Financing Bank loans (444.4) 404.3 Proceeds from issuance of long-term debt 1,084.3 2,461.5 Repayment of long-term debt (1,093.2) (1,546.5) Repayment of lease liabilities (79.5) (90.7) Net proceeds from issuance of share capital 32.7 684.9 Payment of dividends (204.6) (269.7) Net cash (used for) generated from financing activities $ 704.7) $ .643.8 Decrease (increase) in cash and cash equivalents (14.0) 185.8 Cash and cash equivalents, beginning of year 319.4 112.7 Effect of inflation 15.9 25.4 Effect of exchange rate changes (12.6) (4.5) Cash and cash equivalents, end of year $ 308.7 $ 319.4 The accompanying notes are an integral part of these consolidated financial statements