You have been presented with the following selected information from the financial statements of one of Canada's largest dairy producers, Saputo Inc. (in $ millions): Statement of financial position 2021 2020 2019 Accounts receivable $1,217 $1,372 $1,248 Inventory 2,294 2,221 1,681 Total current assets 3,948 4,069 3,134 Total assets 13,123 13,793 9,886 Current liabilities 2,146 2,494 1,932 Total liabilities 6,679 7,234 4,465 Statement of income Sales $14,294 $14,944 $13,502 Cost of goods sold 9,575 10,181 9,179 Interest expense 79 96 67 Income tax expense 218 217 230 Net income 626 583 755

You have been presented with the following selected information from the financial statements of one of Canada's largest dairy producers, Saputo Inc. (in $ millions): Statement of financial position 2021 2020 2019 Accounts receivable $1,217 $1,372 $1,248 Inventory 2,294 2,221 1,681 Total current assets 3,948 4,069 3,134 Total assets 13,123 13,793 9,886 Current liabilities 2,146 2,494 1,932 Total liabilities 6,679 7,234 4,465 Statement of income Sales $14,294 $14,944 $13,502 Cost of goods sold 9,575 10,181 9,179 Interest expense 79 96 67 Income tax expense 218 217 230 Net income 626 583 755

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

You have been presented with the following selected information from the financial statements of one of Canada's largest dairy
producers, Saputo Inc. (in $ millions):
Statement of financial position
2021
2020
2019
Accounts receivable
$1,217
$1,372
$1,248
Inventory
2,294
2,221
1,681
Total current assets
3,948
4,069
3,134
Total assets
13,123
13,793
9,886
Current liabilities
2,146
2,494
1,932
Total liabilities
6,679
7,234
4,465
Statement of income
Sales
$14,294
$14,944
$13,502
Cost of goods sold
9,575
10,181
9,179
Interest expense
79
96
67
Income tax expense
218
217
230
Net income
626
583
755

(a)
Calculate each of the following ratios for 2021 and 2020. (Round answers to 1 decimal place, e.g. 17.5% or 6.5:1 or 2.6.)
1. Current ratio
2021
1.8
:1
2020
1.6
:1
2.
Receivables turnover
11.0
times
11.4
times
3.
Inventory turnover
4.
Debt to total assets
4.2
times
5.2
times
50.9
%
52.4
%
5.
Times interest earned
9.3
times
11.7
times

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