Blog – Corporate Profits vs Inflation There are many factors that go into setting sales price including volume discount, cost of delivery, etc. https://www.gartner.com/en/information-technology/glossary/cost-to-serve Supply and demand have an enormous influence on prices - https://www.freightwaves.com/news/if-supply-chain-crunch-is-finally-easing-why-is-inflation-so-high Stimulus and inflation - https://www.ctvnews.ca/business/bank-of-canada-governor-says-economic-stimulus-should-have-stopped-earlier-to-tame-inflation-1.6076297 Inflation act - https://www.bnnbloomberg.ca/trudeau-spending-risks-fuelling-inflationary-fire-cibc-says-1.1816873 More needs to be done to address the systemic issues with inflation

1. INFLATION VS
CORPORATION
PROFITS
By: Paul Young CPA CGA
Date: November 23, 2022

2. PAU L YO U N G -
B I O
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. AGENDA
• Inflation Change – Aug/22 vs Sep/22
• Inflation Change – Sep21 vs Sep/19
• Inflation Change (Carbon Tax)
• Profits and Stock Market vs Cost indexes
• Quarterly Profits
• Cost of Living / Canada
• Housing Costs
• Supply Chain
• Natural Resources / Blog
3
• Commodities
• Lithium
• Fiscal Management
• Stimulus and Inflation
• Corporate Profits
• GDP and Growth
• Circular and Green Economy

4. I NFLATI ON ANALYSI S – AUG/22
VS SEP/21
4

5. I NFLATI ON ANALYSI S – SEP21
VS SEP19
5

6. CARBON TAXATI ON
6

7. CORP PROFI TS VS COSTS
7

8. QUARTERLY PROFI TS
8

9. KEY METRI CS / COST
9

10. COST LIVING / KEY METRICS
10

11. HOUSI N G COSTS
11

12. SUPPLY CHAI N
12
@OmarAlghabra it took you 7 years to
complete a port review. I thought you
stood up for jobs and investments. You
first order of business in 2015 was to kill
two pipelines, right?
https://www.slideshare.net/paulyoungcga
/how-best-to-build-a-reslient-supply-
chain-october-2022pptx
https://www.canadianmanufacturing.com
/manufacturing/federal-government-
announces-plans-to-change-how-ports-
work-to-strengthen-supply-chain-
285992/

13. COMMODI TI ES
13

14. LI THI UM
14

15. NATURAL RESOURCE S
15
https://twitter.com/SeamusORegan/status/1562536889131110406
@SeamusORegan failed to say that in '16 is when @JustinTrudeau told the world CAN should be known for its
resourcefulness & not its resources. NR has struggle for nearly 7 yrs. due to LPC agenda!
https://www.slideshare.net/paulyoungcga/what-is-next-for-canadas-mining-forestry-energy-and-agricultural-sectorspptx or
https://www.huffpost.com/archive/ca/entry/canada-ranks-among-worlds-best-economies-by-this-1-measure_n_10383284
or https://statisticstimes.com/economy/projected-world-gdp-capita-ranking.php

16. FI SCAL MANAGEME N T CYCLE
16
Summary:
There was a budgetary deficit of $3.9 billion in July 2022,
compared to a deficit of $10.9 billion in July 2021. The budgetary
deficit before net actuarial losses was $3.0 billion, compared to a
deficit of $9.6 billion in the same period of 2021-22. The
budgetary balance before net actuarial losses is intended to
supplement the traditional budgetary balance and improve the
transparency of the government’s financial reporting by isolating
the impact of the amortization of net actuarial losses arising from
the revaluation of the government’s pension and other employee
future benefit plans.
As expected, the government’s 2022-23 financial results continue to
improve compared to the peak of the COVID-19 crisis and the
unprecedented level of temporary COVID-19 response measures at the
time.
Source – Government of Canada and
https://www.slideshare.net/paulyoungcga/fiscal-management-cycle-
canada-july-2022pptx

17. STI MULUS
17
BOC has now admitted that @JustinTrudeau & his team poorly
managed the stimulus. https://kitchener.citynews.ca/local-
news/economic-stimulus-should-have-stopped-earlier-to-tame-
inflation-bank-of-canada-says-5849347
BNS also called out the new inflationary measures by Trudeau -
https://www.bnnbloomberg.ca/trudeau-says-new-spending-
won-t-fuel-inflation-scotiabank-disagrees-1.1818269
https://www.slideshare.net/paulyoungcga/what-is-next-for-
monetary-policies-canada-september-2022pptx

18. CORPORAT E PROFI TS
18
@DTCochrane you do realize there are timing differences, right? There are
permanent and timing differences, right? I bet you never really look at capital
consumption or R&D spending or transfer pricing, right? I novel ideal leave tax
analysis to the experts!
https://www.slideshare.net/paulyoungcga/how-do-corporate-profits-flow-from-a-
corporationpptx
Summary:
Too much is written and said on corporate profits as part of politicians crafting
policies to reduce inflation.
Green Energy continues to receive direct subsidies and grants from all levels of
government. https://investorintel.com/markets/cleantech/cleantech-
intel/greenwashing-its-not-easy-pretending-to-be-green/
Pension and Mutual funds returns are based on how those funds are managed.
Left-leaning politicians continue to push high tax and regulatory policies. There
needs to be better balanced between mitigating climate change and growing the
economy - https://www.slideshare.net/paulyoungcga/mitigation-of-climate-
change-green-and-circular-economy-june-2022pptx
Global economy continues to face many challenges including geopolitical risk and
threats along with high inflation rates

19. GDP AND GROWTH
19
 Monthly GDP was up 0.1% from June to July, with strength in oil production
offsetting weakness in retail and manufacturing
 Service sector rebound is losing steam ahead of fall; advance estimate was for a flat
reading in August
 More slowing to come following more rate hikes, with a recession in the year ahead
increasingly likely
http://view.website.rbc.com/?qs=7bc09792d759aaa00fd593e138d8368b1422a9da56ca47f66961a5dc20a3a693b9bfc2450
a488e134300970e70e6d938fea356ba59079209d5b4cf4351363eb74f257a139b45895e
https://www.slideshare.net/paulyoungcga/gdp-and-economic-analysis-canada-and-the-world-july-2022pptx or
@JustinTrudeau came to office with GDP running at a pace of $2.3% post 2009 recession. Trudeau GDP
numbers were declining pre-covid19. GDP went from 3% in 2017 to 1.7% in 2019.
https://www.slideshare.net/paulyoungcga/gdp-and-economic-analysis-canada-and-the-world-july-2022pptx
Jul22 GDP numbers continue to be sluggish economy!
@MarkGerretsen @DanAlbas

20. CI RCULAR AND GREEN
ECONOMY
20
• Canada already taxes pollution through its environmental regulations and taxes
• Green and circular policies need to be available to everyone
• Better urban planning as part of managing land-use
• Better forest and water management practices
• Adoption of expert/smart/vertical farming practices
• Canada is a carbon sink
• Carbon taxation continues to impact on the cost of living
https://www.slideshare.net/paulyoungcga/mitigation-of-climate-change-green-and-circular-
economy-june-2022pptx or https://www.slideshare.net/paulyoungcga/how-to-best-support-a-
circular-economy

21. SUMMARY
• All levels of government need to address the systemic issues with inflation
• Improving productivity
• Focusing on affordable housing solutions
• Focusing policies that support FDI and private sector capital investment
• Focusing on building infrastructure as part improving the flow of goods and people
• Focusing delivering government spending with value for money
• Supply chain disruption
• Elimination of carbon tax
• Streamlining regulations
• Closing the skills gap
• Focusing on innovation
• Promoting policies that protect the environment why growing the economy in a sustainable way
21
Blog – Corporate Profits vs Inflation
There are many factors that go into setting sales price including volume discount, cost of delivery, etc.
https://www.gartner.com/en/information-technology/glossary/cost-to-serve
Supply and demand have an enormous influence on prices - https://www.freightwaves.com/news/if-
supply-chain-crunch-is-finally-easing-why-is-inflation-so-high
Stimulus and inflation - https://www.ctvnews.ca/business/bank-of-canada-governor-says-economic-
stimulus-should-have-stopped-earlier-to-tame-inflation-1.6076297
Inflation act - https://www.bnnbloomberg.ca/trudeau-spending-risks-fuelling-inflationary-fire-cibc-says-
1.1816873
More needs to be done to address the systemic issues with inflation
If supply chain
crunch is finally easing, why is inflation so high .pdf
Bank of Canada
governor says economic stimulus should have stopped earlier to tame inflation CTV News.pdf
Trudeau spending
risks fuelling 'inflationary fire,' CIBC says - BNN Bloomberg.pdf
Canadian DB pension
plan assets dropped 2.8_ in September report Benefits Canada.com.pdf
Wages set to rise 2.7_
in 2022 as inflation hits new high, says survey Benefits Canada.com.pdf
Carmakers Taking
Hold Of Raw Materials As Battery Cost Rise - mfame.guru.pdf
Fraser Institute News
Release Canada lags behind Australia on productivity--more business investment key to increased living standards Financial Post.pdf
Proof Point Canada
still isn't spending enough on the green economy.pdf
Business Outlook
Survey—Second Quarter of 2022 - Bank of Canada.pdf
How Automation Will
Bring Predictability Back to Your Business Packaging Strategies.pdf
Canada’s ‘skills gap’
problem explained Pipa News PiPa News.pdf
Varcoe Incoming
Enbridge CEO commits to Calgary with optimistic eye Calgary Herald.pdf
Reflect on cost of
food this Thanksgiving, local farmers urge CBC News.pdf
Electric vehicles
money savers, or money Financial Post.pdf
The Average Price of
an Electric Car (Updated Monthly) - YAA.pdf
Fertilizer emission
plan would “negatively impact” exports food security org True North.pdf
Services, food boost
U.S. producer prices; some relief could be on the way.pdf
Definition of Cost To
Serve - Gartner Information Technology Glossary.pdf
1. Pension fund / Solvency https://www.benefitscanada.com/canadian-investment-
review/research-markets/canadian-db-pension-plan-assets-dropped-2-8-in-september-report/
2. Wage increases - https://www.benefitscanada.com/news/bencan/survey-says-wages-set-to-
rise-2-7-in-2022-as-inflation-hits-new-high/
3. Raw material costs - https://mfame.guru/carmakers-taking-hold-of-raw-materials-as-battery-
cost-rise/
4. Productivity - https://financialpost.com/globe-newswire/fraser-institute-news-release-canada-
lags-behind-australia-on-productivity-more-business-investment-key-to-increased-living-
standards