High Liner Foods Incorporated processes and markets prepared frozen seafood throughout Canada, the United States, and Mexico under the High Liner and Fisher Boy brands. It also produces private label products, and supplies restaurants and institutions. Exhibits 6.10A and 6.10B contain financial statements that were included in the company’s 2016 annual report:

EXHIBIT 6.10A High Liner Foods Incorporated’s 2016 Consolidated Statement of Income

EXHIBIT 6.10B High Liner Foods Incorporated’s 2016 Consolidated Statement of Financial Position

Required

a. Calculate High Liner’s following ratios for both 2016 and 2015:

i. Current ratio 

ii. Quick ratio 

iii. Accounts receivable turnover (use the balance of accounts receivable at each year end for this calculation, rather than average balances) 

iv. Average collection period

b. Comment on the results of the above ratio calculations and any significant trends they reveal.

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HIGH LINER FOODS INCORPORATED Consolidated Statement of Income (in thousands of United States dollars, except per share amounts) Fifty-two weeks ended December 31, January 2, 2016 Notes 2016 $956,016 $1,001,507 Revenues Cost of sales 799,843 753,179 Gross profit 202,837 201,664 Distribution expenses 48,037 43,610 Selling, general and administrative expenses 96,978 93,597 Impairment of property, plant and equipment 5 2,327 Business acquisition, integration and other expenses 4,787 7,473 Results from operating activities 55,135 52,557 Finance costs 25 14,296 16,247 Income before income taxes 40,839 36,310 Income taxes Current 17 8,737 5,707 Deferred 1,022 17 (848) Total income tax expense 7,889 6,729 $ 32,950 $ 29,581 Net income HIGH LINER FOODS INCORPORATED Consolidated Statement of Financial Position (in thousands of United States dollars) December 31, January 2, Notes 2016 2016 ASSETS Current Cash $ 18,252 $ 1,043 Accounts receivable 75,190 76,335 Income taxes receivable 3,783 5,218 Other financial assets 22 1,705 6,453 Inventories 252,118 261,771 Prepaid expenses 3,340 2,051