Maple Leaf Foods Inc. is a major Canadian producer of food products. Excerpts from the company’s financial statements for the year ended December 31, 2020, are in Exhibits 2.22B

Required 

a. How much cash and cash equivalents did Maple Leaf have available to use at the end of fiscal 2020? 

b. What percentage of Maple Leaf’s assets was financed by shareholders in 2020? Did this represent an increase or decrease relative to 2019? What does this change mean? 

c. How much did Maple Leaf’s accounts receivable increase from 2019 to 2020? How did this compare with the change in sales during the same period? What does this tell you? 

d. Determine Maple Leaf’s gross profit margin percentage for 2020. How did this compare with 2019? Comment on what this analysis tells you about the company. 

e. Did the company pay dividends during fiscal 2020? How did you determine this? 

f. How much cash did the company pay for additions to long-term assets in 2020? How did this compare with the proceeds it received from the sale of long-term assets during the year? 

g. Calculate the following ratios for fiscal 2020 and 2019.  

i. Profit margin ratio 

ii. Return on assets 

iii. Return on equity 

h. Comment on your results in part (g).

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MAPLE LEAF FOODS INC. Consolidated Statements of Net Earnings (In thousands of Canadian dollars, except share amounts) Sales Cost of goods sold Gross profit Selling, general and administrative expenses Earning before the following: Restructuring and other related costs Other expense Earnings before interest and income taxes Interest expense and other financing costs Earnings before income taxes Income tax expense Net earnings Notes 13 20 7 December 31, 2020 $4,303,722 3,600,669 703,053 490,659 212,394 4,284 16,757 191,353 31,480 159,873 46,596 $ 113,277 December 31, 2019 $3,941,545 3,350,566 590,979 457,681 133,298 11,004 3,268 119,026 32,031 86,995 12,367 $ 74,628