Big Rock Brewery Inc. is a regional producer of craft beers and cider. The company’s products are sold in six provinces and two territories in Canada. Exhibits 10.15B contain extracts from Big Rock’s 2020 annual report.

Required 

a. Calculate the ratios that the management of Big Rock Brewery have indicated they monitor in relation to their management of capital. 

b. Write a short report commenting on the results of the ratio calculations in part (a).

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BIG ROCK BREWERY INC. Consolidated Statements of Comprehensive Loss (In thousands of Canadian dollars, except per share amounts) Revenue Net revenue Cost of sales Gross profit Expenses Selling expenses General and administrative Depreciation and amortization Impairment of property, plant & equipment Operating expenses Operating loss Finance expenses Other income Loss before income taxes Income tax expense (recovery) Current Deferred Net loss and comprehensive loss Note 5 6 6 6 6 12 7 8 Year ended December 30 2019 2020 $43,984 27,499 16,485 9,287 5,096 736 1,500 16,619 (134) 506 12 (628) (339) 377 38 $ (666) $42,653 30,317 12,336 11,347 5,556 533 17,436 (5,100) 401 713 (4,788) 90 (1,956) (1,866) $ (2,922)