Via Rail	CP Rail
	2021	2022	2021	2022
Current assets
Cash	4,400	9,741	69	451
Accounts receivable	71,186	154,189	819	1,016
Inventory	30,191	25,655	235	284
Other	9,234	10,572	229	138
Total current assets	115,011	200,157	1,352	1,889
Long-term assets
Property, plant, and equipment	1,285,893	1,473,578	21,200	22,385
Long-term investments	52,405	51,140	42,518	45,314
Intangible assets	356,119	387,958	371	386
Other long-term assets	368,065	478,494	419	420
Total long-term assets	2,062,482	2,391,170	64,508	68,505
Total assets	2,177,493	2,591,327	68,177	73,495
Current liabilities
Accounts payable and accrued liabilities	161,637	234,498	1,609	1,703
Notes payable - current	9,008	8,137	1,550	1,510
Other current liabilities	21,999	37,680
Total current liabilities	192,644	280,315	3,159	3,213
Long-term liabilities	1,830,840	2,075,829	31,189	31,396
Total liabilities	2,023,484	2,356,144	34,348	34,609
Common share capital
Preferred share capital (if any)	9,300	9,300	25,475	25,516
Retained earnings	144,709	225,883	10,391	13,201
Other equity			2,037	169
Total equity	154,009	235,183	33,829	38,886
Total liabilities and equity	2,177,493	2,591,327	68,177	73,495
Operating revenue	133,456	334,160	7,995	8,814
Cost of goods sold	617,186	805,171	4,789	5,485
Other operating expenses	6,882	15,779	854	1,468
Other income	477,534	463,532
Earnings before interest and taxes	13,078	23,258	3,206	3,329
Interest expense	899	2,440	440	652
Earnings before taxes	13,977	25,698	3,620	4,145
Tax expense	12,312	10,457	768	628
Net earnings	26,289	15,241	2,852	3,517
Other comprehensive income	339,186	96,415	711	2,194
Total comprehensive income	312,897	81,174	3,563	5,711

b. Describe the firms' performance relative to each other using only the financial information shown on the face of the financial statements, in particular the income statement and balance sheet. (4 marks)

c. Review the cash flow statements for the two firms and comment on the firms' performance relative to each other. (3 marks)

d. Calculate the ratios given in the textbook. Note any that you were unable to calculate due to a lack of information in the firms' financial statements. (15 marks)

e. Describe the firms' performance relative to each other using the ratios you calculated. Address all the five types of ratios and the DuPont analysis in your discussion of performance. (11 marks)

f. Compute and consider the firms' degree of operating leverage in both years and draw conclusions regarding which firm has a riskier or more conservative cost structure. (4 marks)

g. Summarize your results and discuss which firm you think is the better investment choice and why. (4 marks)