Tootsie roll annual report 2017

Module 02
Required: Complete the purple areas of the chart, and the questions in the text boxes below.
List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
and replace Year 3 with 2013.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help,
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Income Statement 2018 2017 2016
Total Revenue 518,920 519,289 521,100
Product Cost of Goods Sold 329,880 326,411 320,869
Rental and Royalty Cost 867 972 1,019
Total Gross Margin 188,173 191,906 199,212
Selling, Marketing and Administrative Expenses 117,691 121,484 107,979
Earnings from Operations 70,482 $ 70,422 91,233
Income Taxes 16,401 3,907 30,593
Net Earnings 56,893 80,864 67,510
Question 1: What is Tootsie Roll's Gross Profit Margin? (Hint: Divide Total Gross Margin by Total Revenue). What does this figure represent? Gross Profit Margin= total gross margin/total revenue year1/2018 = 188,173 /518,920 =36.2% year 2/2017= 191,906 /519,289 =37% year 3/2016= 199,212 /521,100 =38.2% The figure (gross profit margin) represents the management's efficiency in generating profit per unit dollar of labor cost expensed. Therefore,Tootsie Roll Industries Inc. was more efficient in 2016 than in 2017 and 2018.

Question 2:What is Tootsie Roll's Profit Margin? (Hint: Profit margin is calculated by dividing Net Earnings by Total Sales). What does this figure represent? Profit margin= net earnings/total revenue year 1/2018= 56,893/518,920 =10.96% year 2/2017= 80,864 /519,289 =15.6% year 3/ 2016= 67,510 /521,100 =13% The figure (profit magin) represents the amount of money that the company earns per every dollar of sales. It integrates both the labor cost and operating expenses. Based on the calculations, Tootsie Roll earned more in 2017 than the other years.

Question 3: What are Tootsie Roll's earnings per share in the three years presented? (Hint: Check the income statement after Net Earnings for this information.) earnings per share in 2018= $0.89 earnings per share in 2017= $1.24 earnings per share in 2016= $1.02

Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industries, Inc. recognize revenue? Tootsie Roll industries recognizes revenue in accordance with the Accounting Standards Codification ("ASC") Topic 606 which stipulates a five-step model (Tootsie Roll Industries, n.d.) .

Question 5: Has Net Product Sales shown an increasing or decreasing trend over the past three years? Interpret this trend. Should this be a concern for the company? Why or why not? Net product sales have been on a decreasing trend from 2016 to 2018. The figures were $515,251, $ 515,674, and $ 517,373 in 2018, 2017, and 2016 respectively. The company should be concered because this shows the lack of sufficient market growth. Perhaps their products are entering the decline phase or their advertising isn't good enough.

Question 6: Has the Net Earnings shown an increasing or decreasing trend over the past three years? Interpret this trend. Should this be a concern for the company? Why or why not? Net earnings increased from 2016 to 2017 before reducing drastically in 2018. The decrease in net earnings should be a concern to the company as it jeopardized their role to deliver value to shareholders.

Question 7: Compare the Net Product Sales trend and the Net Earnings trend. Are these two items trending the same? Interpret any differences and infer what those may mean in relation to the company's operating decisions over the past three years. The net product sales and the net earnings trend are not trending the same. For instance, while net product sales dropped from 2016 to 2017, the net earnings in this period increased. This can be attributed to the increase in income generating activities during this period that's a result of efficient management in terms of operating decisions.

References Tootsie Roll Industries. (n.d.). Company: Financials. Tootsie.com. Retrieved from https://tootsie.com/financials/

Module 03
Required: Complete the purple areas of the chart, and the questions in the text boxes below.
List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
and replace Year 3 with 2013.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help,
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Balance Sheet Year 1 Year 2 Year 3
Cash and Cash Equivalents
Investments
Accounts Receivable Trade
Inventory (Add: FG and WIP + RM & supplies lines)
Total Current Assets
Net Property, Plant and Equipment
Goodwill
Trademarks
Total Assets
Accounts Payable
Accrued Liabilities
Total Current Liabilities
Total Noncurrent Liabilities
Total liabilities (Add total current liab + total noncurrent)
Common Stock
Class B Common Stock
Retained Earnings
Treasury Stock
Total Equity
Total liabilities and Shareholders Equity
Question 1: Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method of depreciation does Tootsie Roll Industries Inc. use for their property, plant and equipment?

Question 2: : Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method does Tootsie Roll Industries Inc. use to value its inventory?

Question 3: Calculate Tootsie Roll Industry Inc's fixed asset turnover and interpret it's meaning. Show your work. (Hint: Fixed Asset Turnover is calculated as Net Earnings/ Net Property, Plant and Equipment)

Question 4: Calculate Tootsie Roll Industry Inc's accounts receivable turnover for the most recent year and interpret its meaning. Show your work. (Hint: Accounts Receivable Turnover is calculated as Total Sales/Average Accounts Receivable.)

Question 5: Calculate Tootsie Roll Industry Inc's inventory turnover ratio for the most recent year and interpret its meaning. Show your work. (Hint: Inventory turnover ratio is calculated as Product Cost of Goods Sold/Average Inventory.)

Question 6: Has the total current assets amount show an increasing or decreasing trend from one year to the next? What account or accounts experienced the largest change? (Hint: To find the amount of change, subtract the prior year amount from the current year amount. Positive answers mean the account has increased by that amount, negative answers mean the account has decreased by that amount.)

Question 7: Is the amount of current liabilities more or less than the long-term liabilities for the most recent year? What does the result mean?

Question 8: Is the total stockholders' equity more or less than total liabilities for the most recent year? What does the result mean?

Question 9: Calculate the debt ratio and current ratio for your company for the most recent year. Generally speaking, what do these ratios tell you? (Hint: Debt ratio is calculated as Total Liabilities/Total Assets; Current ratio is calculated as Total Current Assets/Total Current Liabilities.)

Question 10: What is the main reason for the change in stockholders' equity? What is the largest component of stockholders' equity?

Question 11: How many classes of common stock does the company have? For each class, how many shares are authorized, issued, and outstanding? (To find outstanding shares, subtract any treasury stock for that class from the number issued to find the number outstanding.)

Question 12: Calculate the Return on Stockholder's Equity for the most recent year and interpret its meaning. Show your work. (Hint: Return on Stockholders Equity is calculated as Net Earnings/Average Total Equity.)

References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa )

Module 04
Required: Complete the purple areas of the chart, and the questions in the text boxes below.
List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
and replace Year 3 with 2013.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help,
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Statement of Cash Flows Year 1 Year 2 Year 3
Net Earnings
Net Cash Provided by Operating Activities
Net Cash Used in Investing Activities
Net Cash Used in Financing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Now, locate the Auditors Report, titled "Report of Independent Registered Public Accounting Firm." Address the following
questions related to this report.
Question 1: Which method of reporting cash flows from operations does the company use?

Question 2: Compare net earnings to the net cash provided by operating activities. Explain why these two figures are different. Are these two numbers trending in the same direction? What is the largest adjustment item in the operating section for the most recent year?

Question 3: What items in the investing section have created the largest cash inflow? Largest cash outflow? Did investing activities provide cash or use cash in each of the three years presented? How can you tell?

Question 4: Did the financing activities provide cash or use cash in each of the three years presented? What are the stock repurchase trends of the company? What are the dividend trends of the company?

Question 5: Does the cash provided by operations cover the amounts of cash used for both investing and financing activities? What does this result mean for the overall amount of cash in the company from the start of the year to the end of the year? Has it increased or decreased? Should this be a concenr for the company?

Question 1: Who is the letter addressed to?

Question 2: What is management responsible for?

Question 3: What is the auditor responsible for?

Question 4: Does the auditor give absolute assurance that the financials are free of material error?

Question 5: What is the level of assurance given by the auditor?

Question 6: What policies and procedures does a company's internal control over financial reporting include?

Question 7: What audit firm signed the audit letter?

References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa )

Module 06
Required: Complete the purple cells for horizontal and vertical analysis for Tootsie Roll Industries using the following formulas:
Vertical Analysis: (Financial Statement item/base amount), where your base amount is Total Revenue for the income statement and Total Assets for the balance sheet.
Horizontal Analysis: (Current year-base year)/base year
Then, complete the purple cells in the financial ratios below. You will use the analyses on this tab of the workbook to create your final project.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help,
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc. Vertical Analysis Vertical Analysis Horizontal Analysis
Income Statement Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 to 1
Total Revenue 518,920 ERROR:#REF! 521,100
Product Cost of Goods Sold 519,289 326,411 320,869
Rental and Royalty Cost 867 972 1,019
Total Gross Margin 188,173 191,906 199,212
Selling, Marketing and Administrative Expenses 117,691 121,484 107,979
Earnings from Operations 70,482 70,422 91,233
Income Taxes 16,401 3,907 30,593
Net Earnings 56,893 80,864 67,510
Vertical Analysis Vertical Analysis Horizontal Analysis
Balance Sheet Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 to 1
Cash and Cash Equivalents 0 0 0
Investments 0 0 0
Accounts Receivable Trade 0 0 0
Inventory (Add: FG and WIP + RM & supplies lines) 0 0 0
Total Current Assets 0 0 0
Net Property, Plant and Equipment 0 0 0
Goodwill 0 0 0
Trademarks 0 0 0
Total Assets 0 0 0
Accounts Payable 0 0 0
Accrued Liabilities 0 0 0
Total Current Liabilities 0 0 0
Total Noncurrent Liabilities 0 0 0
Total liabilities (Add total current liab + total noncurrent) 0 0 0
Common Stock 0 0 0
Class B Common Stock 0 0 0
Retained Earnings 0 0 0
Treasury Stock 0 0 0
Total Equity 0 0 0
Total liabilities and Shareholders Equity 0 0 0
Tootsie Roll Industries TRI TRI Competition or Industry Ratio** Ratio Benchmarks
Formula Year 1 Year 2 Year 1
Liquidity Ratios
Current Ratio *Total Current Assets/Total Current Liabilities Greater than 1.
Acid Test Ratio *(Cash & Cash Equivalents +Iinvestments + Accounts Receivable Trade)/Total Current Liabilities Ideally greater than 1, but likely will be less than 1.
Asset Management Ratio
Inventory Turnover *Product Cost of Goods Sold/Average Inventory Depends on industry, higher is better
(remember, Avg Inv is beginning year inv + ending year inv, result divided by 2.)
Solvency Ratios
Debt ratio *Total Liabilities/Total Assets Less than 67%
Times Interest Earned Ratio *Operating Income/Interest Expense Higher the better, unless interest exp is 0.
Profitability Ratios
Gross Profit Percent *Total Gross Margin/Total Revenue Depends on industry, higher is better
Return on Net Sales *Net Earnings/Total Sales Depends on industry, higher is better
Earnings Per Share (EPS) **Locate in research (on company income statement) Depends on company. Would want to see stay stable or increase, not decrease.
Market Analysis
Price Earning Ratio **Locate in research (on Internet) Depends on company. Remaining steady is good.
Dividend Yield **Locate in research (on Internet) Depends on company. Remaining steady is good.
*Calculated by Author
**Located in research
References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa )