Please read the instructions and answer please.

Download the 2019 Annual Report from the companys website. Since some companies issue financials in both Canadian and US dollars following different accounting rules (e.g., IFRS vs. US-GAAP), make sure to download the statements using Canadian dollars. Transfer the companys consolidated balance sheets and consolidated statements of operations (i.e., income statement) into an Excel workbook.

I encourage you to do this on your own. For students with very old versions of MS Office, I have included an Excel file that contains the Telus 2019 financials. This is under the Resources tab.

Step 2: Calculate the following ratios for the past 2 fiscal years. You must clearly show the calculations and should not download pre-calculated ratios from another source. I included an example for the current ratio in the Excel spreadsheet referenced above that you can follow for the other ratios. Once your ratios are complete, please copy the ratios from your spreadsheet to your Word document. Use a basic copy/paste so that you can get feedback on your answers. Do not copy as a picture. (25 marks)

Current ratio

Quick ratio

Inventory turnover

Days of inventory on hand

Accounts receivable turnover

Average collection period

Asset turnover

Gross profit margin

Net profit margin

Total debt ratio

Return on assets

Return on equity

Interest coverage ratio

Step 3: Perform a 3-stage DuPont analysis. Note that this needs appropriate analysis, not just a calculation. (15 marks)

Step 4: Comment on any areas of strength or weakness of the company, based on your results of Steps 2 and 3 above. Make sure to look, not just at absolute levels, but also trends over time in solvency, liquidity, profitability, and asset management ratios (20 marks).

Step 5: Compare your results with the management discussion and analysis in the annual report. Examine any differences between their comments and your analysis. You will be assessed on correct use of financial statement analysis tools from the course material, providing thoughtful analysis that draws on the theories discussed in the course as well as links to what is happening with Telus in the current market. (20 marks)

Step 6: Explain whether there would be any difference to your analysis if you were an investor or if you were the CFO. How would the data quality differ in those two roles? (20 marks)

Instructions Step 1: Download the 2019 Annual Report from the company's website. Since some companies issue financials in both Canadian and US dollars following different accounting rules (e.g., IFRS vs. US-GAAP), make sure to download the statements using Canadian dollars. Transfer the company's consolidated balance sheets and consolidated statements of operations (i.e., income statement) into an Excel workbook. I encourage you to do this on your own. For students with very old versions of MS Office, I have included an Excel file that contains the Telus 2019 financials. This is under the Resources tab. Step 2: Calculate the following ratios for the past 2 fiscal years. You must clearly show the calculations and should not download pre-calculated ratios from another source. I included an example for the current ratio in the Excel spreadsheet referenced above that you can follow for the other ratios. Once your ratios are complete, please copy the ratios from your spreadsheet to your Word document. Use a basic copy/paste so that you can get feedback on your answers. Do not copy as a picture. (25 marks) - Current ratio - Quick ratio - Inventory turnover - Days of inventory on hand - Accounts receivable turnover - Average collection period - Asset turnover - Gross profit margin - Net profit margin - Total debt ratio - Return on assets - Return on equity - Interest coverage ratio Step 3: Perform a 3-stage DuPont analysis. Note that this needs appropriate analysis, not just a calculation. (15 marks) Step 4: Comment on any areas of strength or weakness of the company, based on your results of Steps 2 and 3 above. Make sure to look, not just at absolute levels, but also trends over time in solvency, liquidity, profitability, and asset management ratios (20 marks). Step 5: Compare your results with the management discussion and analysis in the annual report. Examine any differences between their comments and your analysis. You will be assessed on correct use of financial statement analysis tools from the course material, providing thoughtful analysis that draws on the theories discussed in the course as well as links to what is happening with Telus in the current market. (20 marks) Step 6: Explain whether there would be any difference to your analysis if you were an investor or if you were the CFO. How would the data quality differ in those two roles? (20 marks) CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME Items never subsequently reclassified to Change in measurement of investment Employee defined benefit plan re- Comprehensive Income Net Income Attributable to: Common Shares Non-controlling interests \begin{tabular}{|r|r|} \hline$1746 & $1600 \\ \hline 30 & 24 \\ \hline$1776 & $1624 \\ \hline \end{tabular} Comprehensive Income Attributable to: Common Shares Non-controlling interests \begin{tabular}{|r|r|} \hline$1516 & $1898 \\ \hline 38 & 10 \\ \hline$1554 & $1908 \\ \hline \end{tabular} Net Income Per Common Share 12,28(b) Basic Diluted Total Weighted Average Common Total Weighted Average Comm on Basic Diluted The accompanying notes are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Contingent liabilities 29 The accompanying notes are an integral part of these Approved by the Directors: R.H. Auchinleck TELUS 2019 ANNUAL REPORT . 125 CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY Common equity Equity contributed The accompanying notes are an integral part of these consolidated financial statements. 126 . TELUS 2019 ANNUAL REPORT TELUS 2019 ANNUAL REPORT . 127 CONSOLIDATED STATEMENTS OF CASH FLOWS \begin{tabular}{l|c|c|r|} \hline (ears ended December 31 (millions) & Note & 2019 & 2018 \\ \hline Operating Activities & & & \\ \hline Net income & & $1776 & $1624 \\ Adjustments to reconcile net income to cash provided by & & & \\ \hline Depreciation and amortization & 10 & 115 & 757 \\ \hline Deferred income taxes & 14(a) & (2) & 16 \\ \hline Share-based compensation expense, net & 15(b) & 78 & 95 \\ \hline Net employee defined benefit plans expense & & (41) & (53) \\ \hline Employer contributions to employee defined benefit plans & & 130 & (62) \\ \hline Non-current contract assets & 20 & (178) & (8) \\ \hline Non-current unbilled customer finance receivables & 7,21 & (4) & (170) \\ \hline Loss (income) from equity accounted investments & 16(c) & - & 100 \\ \hline Shares settled from Treasury & & (192) & (81) \\ \hline Other & 31(a) & (332) & 256 \\ \hline Net change in non-cash operating working capital & & 3927 & 4058 \\ \hline Cash provided by operating activities & & & \end{tabular} nvesting Activities Cash payments for capital assets, excluding spectrum 31(a) (2952)(2874) Cash payments for spectrum licences Cash payments for acquisitions, net 18(a) (942)(1) Advances to real estate joint ventures Real estate joint venture receipts Proceeds on dispositions ther Cash used by investing activities Financing Activities Dividends paid to holders of Common Shares Treasury shares acquired ssue (repayment) of short-term borrowings, net -ong-term debt issued Redemptions and repayment of long-term debt Shares of subsidiary (purchased from) issued to non- ther Cash provided (used) by financing activities Cash Position ncrease (decrease) in cash and temporary investments, Cash and temporary investments, net, beginning of period Cash and temporary investments, net, end of period Supplemental Disclosure of Operating Cash Flows Instructions Step 1: Download the 2019 Annual Report from the company's website. Since some companies issue financials in both Canadian and US dollars following different accounting rules (e.g., IFRS vs. US-GAAP), make sure to download the statements using Canadian dollars. Transfer the company's consolidated balance sheets and consolidated statements of operations (i.e., income statement) into an Excel workbook. I encourage you to do this on your own. For students with very old versions of MS Office, I have included an Excel file that contains the Telus 2019 financials. This is under the Resources tab. Step 2: Calculate the following ratios for the past 2 fiscal years. You must clearly show the calculations and should not download pre-calculated ratios from another source. I included an example for the current ratio in the Excel spreadsheet referenced above that you can follow for the other ratios. Once your ratios are complete, please copy the ratios from your spreadsheet to your Word document. Use a basic copy/paste so that you can get feedback on your answers. Do not copy as a picture. (25 marks) - Current ratio - Quick ratio - Inventory turnover - Days of inventory on hand - Accounts receivable turnover - Average collection period - Asset turnover - Gross profit margin - Net profit margin - Total debt ratio - Return on assets - Return on equity - Interest coverage ratio Step 3: Perform a 3-stage DuPont analysis. Note that this needs appropriate analysis, not just a calculation. (15 marks) Step 4: Comment on any areas of strength or weakness of the company, based on your results of Steps 2 and 3 above. Make sure to look, not just at absolute levels, but also trends over time in solvency, liquidity, profitability, and asset management ratios (20 marks). Step 5: Compare your results with the management discussion and analysis in the annual report. Examine any differences between their comments and your analysis. You will be assessed on correct use of financial statement analysis tools from the course material, providing thoughtful analysis that draws on the theories discussed in the course as well as links to what is happening with Telus in the current market. (20 marks) Step 6: Explain whether there would be any difference to your analysis if you were an investor or if you were the CFO. How would the data quality differ in those two roles? (20 marks) CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME Items never subsequently reclassified to Change in measurement of investment Employee defined benefit plan re- Comprehensive Income Net Income Attributable to: Common Shares Non-controlling interests \begin{tabular}{|r|r|} \hline$1746 & $1600 \\ \hline 30 & 24 \\ \hline$1776 & $1624 \\ \hline \end{tabular} Comprehensive Income Attributable to: Common Shares Non-controlling interests \begin{tabular}{|r|r|} \hline$1516 & $1898 \\ \hline 38 & 10 \\ \hline$1554 & $1908 \\ \hline \end{tabular} Net Income Per Common Share 12,28(b) Basic Diluted Total Weighted Average Common Total Weighted Average Comm on Basic Diluted The accompanying notes are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Contingent liabilities 29 The accompanying notes are an integral part of these Approved by the Directors: R.H. Auchinleck TELUS 2019 ANNUAL REPORT . 125 CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY Common equity Equity contributed The accompanying notes are an integral part of these consolidated financial statements. 126 . TELUS 2019 ANNUAL REPORT TELUS 2019 ANNUAL REPORT . 127 CONSOLIDATED STATEMENTS OF CASH FLOWS \begin{tabular}{l|c|c|r|} \hline (ears ended December 31 (millions) & Note & 2019 & 2018 \\ \hline Operating Activities & & & \\ \hline Net income & & $1776 & $1624 \\ Adjustments to reconcile net income to cash provided by & & & \\ \hline Depreciation and amortization & 10 & 115 & 757 \\ \hline Deferred income taxes & 14(a) & (2) & 16 \\ \hline Share-based compensation expense, net & 15(b) & 78 & 95 \\ \hline Net employee defined benefit plans expense & & (41) & (53) \\ \hline Employer contributions to employee defined benefit plans & & 130 & (62) \\ \hline Non-current contract assets & 20 & (178) & (8) \\ \hline Non-current unbilled customer finance receivables & 7,21 & (4) & (170) \\ \hline Loss (income) from equity accounted investments & 16(c) & - & 100 \\ \hline Shares settled from Treasury & & (192) & (81) \\ \hline Other & 31(a) & (332) & 256 \\ \hline Net change in non-cash operating working capital & & 3927 & 4058 \\ \hline Cash provided by operating activities & & & \end{tabular} nvesting Activities Cash payments for capital assets, excluding spectrum 31(a) (2952)(2874) Cash payments for spectrum licences Cash payments for acquisitions, net 18(a) (942)(1) Advances to real estate joint ventures Real estate joint venture receipts Proceeds on dispositions ther Cash used by investing activities Financing Activities Dividends paid to holders of Common Shares Treasury shares acquired ssue (repayment) of short-term borrowings, net -ong-term debt issued Redemptions and repayment of long-term debt Shares of subsidiary (purchased from) issued to non- ther Cash provided (used) by financing activities Cash Position ncrease (decrease) in cash and temporary investments, Cash and temporary investments, net, beginning of period Cash and temporary investments, net, end of period Supplemental Disclosure of Operating Cash Flows