The following selected information is available for Canfor Corporation, a British Columbia-based forest products company, for three

Question:

The following selected information is available for Canfor Corporation, a British Columbia-based forest products company, for three fiscal years (in $ millions):
The following selected information is available for Canfor Corporation, a

Instructions
(a) Calculate the current ratio, gross profit margin, and profit margin for each year.
(b) Comment on whether the ratios have improved or deteriorated over the three years.
(c) Compare the 2015 ratios calculated in part (a) with the following industry averages: current ratio 1.2:1; gross profit margin 20.8%, and profit margin 2.6%. Are Canfor's ratios better or worse than those of its industry?

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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