Below are the income statements and balance sheets for Cookshire Cookware Corp.(CCC) for 2012 and 2013. Cookshire Cookware Corp.
Income Statement
For the years ended June 30
(in thousands)

\begin{array}{lrr}&2013&2012\\\text { Revenue } & \$ 5,200 & \$ 4,400 \\\text { Cost of goods sold } & 2,850 & 2,500 \\\text { Operating expenses } & 1,120 & 970 \\\text { Amortization expense } & 300 & 250 \\\text { Interest expense } & 100 & 120 \\\text { Tax expense } & \underline{290} & \underline{200} \\\text { Net income } & \$ 540 & \$ 360\end{array}

Cookshire Cookware Corp.
Balance Sheet
For the years ended June 30
(in thousands)

\begin{array}{lrr}&2013&2012\\\text { Assets: } & \$ 10 & 18 \\\text { Cash } & 520 & 440 \\\text { Accounts Receivable } & 560 & 500 \\\text { Inventory } & 100 & 100\\\text { Property, Plant and Equipment } & & \\\text { (net of accumulated amortization) } & 1,800 & 1,700 \\\text { Other non-current assets } & 150 & 150\\\text { Total Assets: }&\$3,140&\$2,908\end{array}

\begin{array}{lrr}\text { Liabilities: } & & \\\text { Bank loan } & 100 & 150 \\\text { Accounts payable } & 480 & 370 \\\text { Other current liabilities } & 70 & 80 \\\text { Long-term debt } & 970 & 1,200\\&1,620&1,800\\\text { Shareholders' Equity: }\\\text { Capital Stock } & 500 & 500 \\\text { Retained Earnings } & 1,020 & 608\\&1,520&1,308\\\text { Total Liabilities and Shareholders' Equity }&\$3,140&\$2,908\end{array}

Required:
A) Calculate the following ratios for Cookshire Cookware Corp for 2012 and 2013:
i) current ratio
ii) debt-to-equity ratio
iii) gross margin percentage
B) Explain any changes in the ratios from year to year.
C) If you were a potential investor, how would the changes from 2012 to 2013 affect your decision to buy
shares in CCC?

Which of the Following Statements Best Describes the IFRS Conceptual

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