Ten Peaks Coff ee Company Inc. is a Burnaby, British Columbia–based specialty coffee company. The company provides green coffee decaffeination services as well as green coffee handling and storage services. Exhibit 9.13 contains an excerpt from Ten Peaks’ 2016 annual report.

EXHIBIT 9.13 Ten Peaks Coffee Company Inc.’s 2016 Consolidated Statements of Financial Position

TEN PEAKS COFFEE COMPANY INC.

Consolidated Statement of Financial Position

(Tabular amounts in thousands of Canadian dollars)

Required

a. Calculate the accounts payable turnover ratio and accounts payable payment period for Ten Peaks. The company’s cost of goods sold for its 2016 fiscal year was $69,877 thousand.

b. Calculate the company’s current and quick ratio for 2015 and 2016. Comment on the year-over-year trend.

Transcribed Image Text:

December December Note 31, 2015 as at 31, 2016 Assets Current assets $18, 960 Inventories $11,574 6. Accounts receivable 11,707 7,200 Prepaid expenses and other receivables 524 462 Short-term investments 12,700 Derivative assets 95 354 Cash and cash equivalents 25 12,497 9,065 Total current assets 49,097 36,041 Non-current assets Plant and equipment 12,756 10 16,278 Intangible assets 1,947 11 1,687 Deferred tax assets 12 837 944 Total non-current assets 15,647 18,802 $51,688 Total assets $67,899 Liabilities and shareholders' equity Current liabilities Accounts payable 2,797 1,722 Accrued liabilities 1,166 1,455 Dividend payable 20 565 563 Derivative liabilities 815 2,025 Current portion of other liabilities 15 488 869 Total current liabilities 5,831 6,634 Non-current liabilities Derivative liabilities 3,896 1,695 Deferred tax liabilities 12 1,676 604 Convertible debenture 14 11,283 Other liabilities 15 81 69 Asset retirement obligation 16 797 702 Total non-current liabilities 17,733 3,070 Total liabilities 9,704 23,564 Shareholders' equity Share capital 17 43,496 43,448 Share-based compensation reserve 63 72 Accumulated other comprehensive income Retained earnings (deficit) 419 (1,536) 357 Total equity 44,335 41,984 Total liabilities and shareholders' equity $51, 688 $67,899