Sun-Rype Products Ltd., with its head office in Vancouver, manufactures juice-based beverages, fruit snacks, and energy bars. Its 2011 balance sheet and income statement follow.
Assume that the share capital is all common and that the weighted average number of shares outstanding in 2011 was 10,808,000.
Required 1. Prepare a common-size balance sheet and income statement on a comparative basis for 2011 and 2010. Identify any significant changes from 2010 to 2011. Round calculations to two decimal places. 2. Calculate the 2011 ratios for Sun-Rype by completing the schedule below, including a comparison against the industry averages in Exhibit 18.11. Round calculations to two decimal places.
Analysis Component: As part of its cash flow management strategy, assume Sun-Rype requires a current ratio of 2:1. Calculate Sun-Rype’s 2010 current ratio and explain the change from 2010 to2011.