DHX Media Inc. is a Halifax-based developer, producer, and distributor of films and television programs. Excerpts from the company’s financial statements for the year ended June 30, 2016, are in Exhibits 2.22A to 2.22C.

EXHIBIT 2.22A DHX Media Ltd.’s 2016 Consolidated Balance Sheet

EXHIBIT 2.22B DHX Media Ltd.’s 2016 Consolidated Statement of Income

EXHIBIT 2.22C DXH Media Ltd.’s 2016 Consolidated Statement of Cash Flows

Required

a. How much cash did DHX have available to use at the end of fiscal 2016?

b. What percentage of DHX’s assets were financed by shareholders in 2016? Did this represent an increase or decrease relative to 2015? What does this change mean?

c. How much did DHX’s accounts receivable increase from 2015 to 2016? How did this compare with the change in revenues during the same period? What does this tell you?

d. Determine direct production costs and expense of film and television programs produced as a percentage of DHX’s revenues in 2016. How did this compare with 2015? Do the same analysis for selling, general, and administrative expenses. Comment on what these trends tell you about the company.

e. Did the company pay dividends during fiscal 2016? How did you determine this?

f. How much property and equipment did DHX acquire in 2016? How did this compare with the proceeds it received from the sale of property and equipment during the year?

g. Calculate the following ratios for fiscal 2016 and 2015. (Note that, in order to be able to calculate these ratios for each of the years, you will have to use the total assets for each year and the total shareholders’ equity for each year in your ratios, rather than average total assets and average shareholders’ equity.)

i. Profit margin ratio

ii. Return on assets

iii. Return on equity

h. Comment on your results in part “g.”

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DHX MEDIA LTD. Consolidated Balance Sheet As at June 30, 2016 and 2015 (expressed in thousands of Canadian dollars) June 30, June 30, 2016 2015 Assets Current assets Cash and cash equivalents 42,907 80,446 Amounts receivable (note 6) 184,292 178,076 Prepaid expenses and other 7,779 22,078 Investment in film and television programs (note 7) 194,226 239,752 512,269 437,287 Long-term amounts receivable (note 6) 20,753 11,091 Deferred financing fees 526 706 Property and equipment (note 8) 17,683 17,817 Intangible assets (note 9) 127,396 144,610 Goodwill (note 10) 205,342 213,941 808,238 901,183 Liabilities Current liabilities Accounts payable and accrued liabilities (note 7) 128,444 109,143 Deferred revenue 27,601 49,323 June 30, June 30, 2016 2015 2$ Interim production financing (note 11) 92,003 67,743 Current portion of long-term debt and obligations under finance leases (note 11) 11,567 12,916 259,615 239,125 Long-term debt and obligations under finance leases (note 11) 280,506 269,902 Long-term deferred revenue 4 1,686 Other liabilities 15,010 12,542 Deferred income taxes (note 14) 9,213 23,029 564,348 546,284 Shareholders' Equity 336,835 261,954 901,183 808,238