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Piet 127 Lassonde Industries Inc. ofel Lassonde Industries Ine. manufactures and sells fruit and vegetable juices and drinks, as well as specialty food products under such brand names as Oasis, Fruite, Fairlee, and Canadian Club. The company's products are distributed to wholesalers, supermarkets, and food service providers. The following information was reported in a recent annual report: Operating profit Financial expenses Other (gains) losses Profit before income taxes Income tax epense Profic Aitributable to: Company shareholders Non-controling interest Basic and diluted carniags per shure (in \$) Weighted average number of shares eutstanding (in theusandv) 1.488,804 105,192 15,136 1,110 88.946 20.931 568.015 66,382 1,633 568,015 59.50 6,987 1,392,858 133,290 12,216 (250) 121,324 25,826 \$ 95,498 LASSONDE INDUSTRIES INC. Comsolidated Statement of Financial Position For the Years Fided Decraber 31, (in thousands of Canadian dollars) 2018 2017 LASSONDE INDUSTRIESIVC. Censolitated Statenent of Financial Position Fer the Years Ended Deceimber 31 , (in thousands of Canadian dodlars) 2018 2017 Assets Current Cash and cash equivalents 54,575 S 16,234 Accounts receivable 147,137 131,636 Income tax recoverable 5,613 900 Inventories 238,667 207,849 Derivative instruments 8,271 270 Oaher current assets Total current assets Derivative instuments Property, plant, and equipment 12,708 12,447 416.971 369,336 Intangble assets 305,581 1,041 Net defined beneht asset 271.423 273,306 Other loneterm assets 6.704 199,785 11,885 1.113 921: Other current liabilitics Current portion of longterm debt Total current liabilities Derivative instruments Net defined benefit liability Longterm debt Deferred tax liabilities \begin{tabular}{rr} 1.130 & 1,270 \\ 24,580 & 9,807 \\ \hline 240,780 & 102 \\ \hline 1,114 & 4,228 \\ 1,007 & 158,915 \\ 297,267 & 44,560 \\ 54,959 & - \\ 1.228 & 430,749 \\ \hline 596,355 & \\ \hline \end{tabular} Total Liabilities Sharcholders' equity Sharc capital Contributed surplus Accumulated other reserves Retained carnings Noncontrolling interest Total sharehodiers' equity Total liabilities and sharcholders' equity LASSONDE INDUSTRIES INC. Convolidated Statement of Cash Flons (partial) For the Years Eaded Deceuber 31, (in thousands of Canadian dollars) (audited) 2018 2017 Operating activities Profit $68,015 $95,498 Adjustments for Income tax expense Interest expense Depreciation of property, plant, and equipment and amortization of intangible assets Amortization of unearned discounts and unused tax credits 20.931 25,826 Change in fair value of financial instruments 14,464 11,508 Paze ils Cost of the defined benefit plans recognized in profit or loss, net of contributions 48,752 45.214 (279) (550) (Gains) losses on capital assets 1,541 (19) 4,8+1 (2,457) Unrealized foreign exehange (zains) losses 24 (596) 853 (1,697) 159,142 172.727 Change in noncash operating working canital items (7,822) 5,078 Additional information related to 2016 at yearend is as follows: The company declared and paid a dividend of \$2.34 per share during fiscal year 2017 and $3.04 per share during fiscal year 2018 . The market price per share was $251.77 at December 31.2017 and $199.22 at December 31.2018 . Revaired 1. Compute the ratios discussed in this chapter for the past two years. If there is insufficient information, deseribe what is missing and explain what you would do. 2. Assume the role of an investment adviser. A client of yours has the opportunity to invest $1 million in shares of international companies. Prepare a written evaluation of relevant ratios and indicate whether you would recommend to your client that the $1 million be invested in the shares of Lassonde Industries. Piet 127 Lassonde Industries Inc. ofel Lassonde Industries Ine. manufactures and sells fruit and vegetable juices and drinks, as well as specialty food products under such brand names as Oasis, Fruite, Fairlee, and Canadian Club. The company's products are distributed to wholesalers, supermarkets, and food service providers. The following information was reported in a recent annual report: Operating profit Financial expenses Other (gains) losses Profit before income taxes Income tax epense Profic Aitributable to: Company shareholders Non-controling interest Basic and diluted carniags per shure (in \$) Weighted average number of shares eutstanding (in theusandv) 1.488,804 105,192 15,136 1,110 88.946 20.931 568.015 66,382 1,633 568,015 59.50 6,987 1,392,858 133,290 12,216 (250) 121,324 25,826 \$ 95,498 LASSONDE INDUSTRIES INC. Comsolidated Statement of Financial Position For the Years Fided Decraber 31, (in thousands of Canadian dollars) 2018 2017 LASSONDE INDUSTRIESIVC. Censolitated Statenent of Financial Position Fer the Years Ended Deceimber 31 , (in thousands of Canadian dodlars) 2018 2017 Assets Current Cash and cash equivalents 54,575 S 16,234 Accounts receivable 147,137 131,636 Income tax recoverable 5,613 900 Inventories 238,667 207,849 Derivative instruments 8,271 270 Oaher current assets Total current assets Derivative instuments Property, plant, and equipment 12,708 12,447 416.971 369,336 Intangble assets 305,581 1,041 Net defined beneht asset 271.423 273,306 Other loneterm assets 6.704 199,785 11,885 1.113 921: Other current liabilitics Current portion of longterm debt Total current liabilities Derivative instruments Net defined benefit liability Longterm debt Deferred tax liabilities \begin{tabular}{rr} 1.130 & 1,270 \\ 24,580 & 9,807 \\ \hline 240,780 & 102 \\ \hline 1,114 & 4,228 \\ 1,007 & 158,915 \\ 297,267 & 44,560 \\ 54,959 & - \\ 1.228 & 430,749 \\ \hline 596,355 & \\ \hline \end{tabular} Total Liabilities Sharcholders' equity Sharc capital Contributed surplus Accumulated other reserves Retained carnings Noncontrolling interest Total sharehodiers' equity Total liabilities and sharcholders' equity LASSONDE INDUSTRIES INC. Convolidated Statement of Cash Flons (partial) For the Years Eaded Deceuber 31, (in thousands of Canadian dollars) (audited) 2018 2017 Operating activities Profit $68,015 $95,498 Adjustments for Income tax expense Interest expense Depreciation of property, plant, and equipment and amortization of intangible assets Amortization of unearned discounts and unused tax credits 20.931 25,826 Change in fair value of financial instruments 14,464 11,508 Paze ils Cost of the defined benefit plans recognized in profit or loss, net of contributions 48,752 45.214 (279) (550) (Gains) losses on capital assets 1,541 (19) 4,8+1 (2,457) Unrealized foreign exehange (zains) losses 24 (596) 853 (1,697) 159,142 172.727 Change in noncash operating working canital items (7,822) 5,078 Additional information related to 2016 at yearend is as follows: The company declared and paid a dividend of \$2.34 per share during fiscal year 2017 and $3.04 per share during fiscal year 2018 . The market price per share was $251.77 at December 31.2017 and $199.22 at December 31.2018 . Revaired 1. Compute the ratios discussed in this chapter for the past two years. If there is insufficient information, deseribe what is missing and explain what you would do. 2. Assume the role of an investment adviser. A client of yours has the opportunity to invest $1 million in shares of international companies. Prepare a written evaluation of relevant ratios and indicate whether you would recommend to your client that the $1 million be invested in the shares of Lassonde Industries

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