Saputo Inc. is a Montreal-based producer and distributor of dairy products, including cheese and yogourt products. According to the company’s website, it is “one of the top ten dairy processors in the world.” Exhibit 6.14A shows the company’s statement of financial position for the year ended March 31, 2020.

Required 

a. Calculate the following ratios for Saputo for both 2020 and 2019: i. Current ratio 

ii. Quick ratio 

iii. Accounts receivable turnover (for this calculation, use the balance of accounts receivable at each year end, 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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SAPUTO INC. Consolidated Statements of Financial Position (in millions of CDN dollars) ASSETS Current assets Cash and cash equivalents Receivables Inventories (Note 5) Income taxes receivable (Note 16) Prepaid expenses and other assets Property, plant and equipment (Note 7) Right-of-use assets (Note 8) Goodwill (Note 9) Intangible assets (Note 9) Other assets (Note 10) Deferred income taxes (Note 16) Total assets March 31, 2020 $ 319.4 1,371.8 2,220.9 50.3 106.6 4,069.0 3,850.0 417.9 3,219.5 1,640.7 545.3 50.7 $13,793.1 March 31, 2019 $ 112.7 1,248.2 1,681.0 34.1 57.8 3,133.8 3,095.4 2,597.6 876.2 131.6 51.0 $9,885.6