Tootsie roll industries inc financial statements

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 2015 2014 2013
Total Revenue 540,112 543,525 543,383
Product Cost of Goods Sold 340,090 340,933 350,960
Rental and Royalty Cost 889 947 937
Total Gross Margin 199,133 201,645 191,486
Selling, Marketing and Administrative Expenses 108,051 117,722 119,133
Earnings from Operations 91,082 83,923 72,353
Income Taxes 26,451 28,434 23,634
Net Earnings 66,127 62,860 60,849
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= 36.632% It shows the rate at which money is generated from sales after substracting cost of goods sold

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=12.32% Is shows the rate at which net profits are generated from sales in a company

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.) 2013= 0.93 2014= 0.99 2015= 1.04

Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industries, Inc. recognize revenue? manufacture and sales of candy product

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? The net trend has decreased over the past three years. There is a concern for the future of this company due to its trend. This might be due to increased competition in the industry or entry of new firms into the market.

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 has increased for the past three years. The reason being the company might have decrease the aftersales services, expenses and the suppliers might have decreased the prices of their products making the cost of goods sold.

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 has been decreasing and the net earnings has been increasing. This means that the company has been able to earn increasingly despite decrease in sales. The cost of goods rom the suppliers might have reduced. The company might have considered in reducing expenses incured in the company.

References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa ) https://www.last10k.com/sec-filings/tr/0001104659-13-016402.htm#ITEM8FinancialStatementsandSupplementary file:///H:/Annual%20Report%202015%20(pdf).pdf

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 2019 2018 2017
Cash and Cash Equivalents 138,960 110,899 96,314
Investments 100,444 75,140 41,606
Accounts Receivable Trade 45,044 49,777 47,354
Inventory (Add: FG and WIP + RM & supplies lines) 59,088 54,524 54,827
Total Current Assets 353,330 304,046 270,920
Net Property, Plant and Equipment 188,455 186,101 178,972
Goodwill 73,237 73,237 73,237
Trademarks 175,024 175,024 175,024
Total Assets 977,864 947,361 930,946
Accounts Payable 12,720 11,817 11,928
Accrued Liabilities 41,611 42,849 45,157
Total Current Liabilities 79,544 61,391 63,788
Total Noncurrent Liabilities 138,671 135,473 133,354
Total liabilities (Add total current liab + total noncurrent) 218,215 196,864 197,142
Common Stock 26,969 26,767 26,361
Class B Common Stock 18,254 17,767 17,285
Retained Earnings 40,809 33,767 57,225
Treasury Stock 1,992 1,992 1,992
Total Equity 759,649 750,497 733,804
Total liabilities and Shareholders Equity 977,864 947,361 930,946
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? The company uses a straight line of depreciation in valuation of 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? It uses LIFO methods in valuation of 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) 2015= net earnings/ fixed assets = 66127/499535 = 0.1324 It shows the ability of the company to generate earnings from fixed assets

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.) 2015= Total sales/account recevable =536692/51010 =10.52 It shows the number of times the company collects its account receivables

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.) Inventory turn over= cog/inventory =340090/62236 = 5.4654 It shows how many times a companies inventory are sold and replaced in a year

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.) Total current assets have shown an increase Cash and cash equivalents have experience the largest change among the current assets

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? Current liabilities are less than long term liabilities It means that the companies oporatioon relies most in long term liabilities that short term liabilities

Question 8: Is the total stockholders' equity more or less than total liabilities for the most recent year? What does the result mean? Total equity are more than total liabilities. This means that the companies oporations relies on on its equity mostly and not borrowings

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.) Debt ratio= Total Liabilities/Total Assets Current ratio=Total Current Assets/Total Current Liabilities =210,437/908,983 = 293,806/72,064 =0.231 = 4.077

Question 10: What is the main reason for the change in stockholders' equity? What is the largest component of stockholders' equity? Change results in sales of stock and retained earnings The largest component is contributed capital

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.) 2 classes of common stock.. Class A, 120,000 shares authorized and 37382 shares issued in 2015. Class , 40,000 shares authorized and 23542 shares issued in 2015.

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.) 2015= 66127/698548 = 0.0947 It shows how much profit a company generates from the money invested by shareholders

References: https://www.last10k.com/sfile:///H:/Annual%20Report%202015%20(pdf).pdfec-filings/tr/0001104659-13-016402.htm#ITEM8FinancialStatementsandSupplementary

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 2017 2018 2019 2019 2018 2017
Net Earnings 80,864 56893 64920 64,839 56,805 80,654 Arrange the numbers like this.
Net Cash Provided by Operating Activities 42,973 100929 100221 100,221 100,929 42,973 Most numbers are correct, only the yellow highlighted
Net Cash Used in Investing Activities (9,343) -44510 -15009 (15,009) (44,510) (9,320) ones are incorrect 9/12
Net Cash Used in Financing Activities (56,881) -42353 -57187 (57,187) (42,353) (56,881)
Increase in Cash and Cash Equivalents 119,145 96720 28025 28,053 14,567 (22,807)
Cash and Cash Equivalents at Beginning of Year 63,826 88283 111287 111,287 96,720 119,527
Cash and Cash Equivalents at End of Year 182,971 185003 139312 139,340 111,287 96,720
-
Yes, correct, we know because it starts with net income. 3/3
The first sentence is true for 2019 and 2018 but not 2017
Okay expand on the difference. One tells you earnings (difference between revenue and expenses)
The other tells you cash provided and used (received & paid)
Check the depreciation (inflow) and accounts receivable and postretirement healthcare benefits (outflow) amounts. 4/6
Very good answer 6/6
Yes, good observations 3/3
Very good 6/6
Now, locate the Auditors Report, titled "Report of Independent Registered Public Accounting Firm." Address the following
questions related to this report.
Yes, correct 3/3
Good work 3/3
Auditors express opinions, 2/3
No not absolute 2/3
Yes, reasonable 3/3
Very good work reading the auditor's report 3/3
Which accounting firm in Chicago. 1/3
Good start. Please use APA format. 2/3
Question 1: Which method of reporting cash flows from operations does the company use? Indirect method

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? The net income was lower than the net cash from operating cash flows from each year. The difference is due to the adjustments needed to convert the total net earnings to the cash amount from operating activities. other working capital is tha largest adjustment.

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? sale and maturity available for sale securities have created the larges cash inflow Purchase from available for sale securities have created the largest cash outflow Investing activities brought more use of cash in the company.. this is shown by the diference between cash inflows and cash outflows in investing activities.

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? Financial ativities provided use of cash. Stock repurchase has been decreasing towards the positive value. divideds have been increasing towards the negative value

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? Cash provided by oporations covers investing and financing activities It means the overal amount of cash in the company is increasing

Question 1: Who is the letter addressed to? To the Board of Directors and Shareholders of Tootsie Roll Industries, Inc.

Question 2: What is management responsible for? The managment is responsible for financial statements, maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting.

Question 3: What is the auditor responsible for? The auditor is responsible for examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation

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

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

Question 6: What policies and procedures does a company's internal control over financial reporting include? (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company. (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company. (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Question 7: What audit firm signed the audit letter? IL audit firm in Chicago

References: https://www.last10k.com/sec-filings/tr/0001104659-13-016402.htm#ITEM8FinancialStatementsandSupplementary file:///C:/Users/INTELI~1/AppData/Local/Temp/62efbc99055192cb96e37d2cbd3f16b6.pdf

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 2019 2018 2017 2019 2018 2019-2017
Total Revenue 527,113 518,920 519,289
Product Cost of Goods Sold 329,102 329,880 326,411
Rental and Royalty Cost 995 867 972
Total Gross Margin 197,016 188,173 191,906
Selling, Marketing and Administrative Expenses 127,802 117,691 121,484
Earnings from Operations 69,214 70,482 70,422
Income Taxes 20,565 16,401 3,907
Net Earnings 64,839 56,805 80,654
Interest Expense 220 181 144
Vertical Analysis Vertical Analysis Horizontal Analysis
Balance Sheet 2019 2018 2017 2019 2018 2019-2017
Cash and Cash Equivalents 138,960 110,899 96,314
Investments 100,444 75,140 41,606
Accounts Receivable Trade 45,044 49,777 47,354
Inventory (Add: FG and WIP + RM & supplies lines) 59,088 54,524 54,827
Total Current Assets 353,330 304,046 270,920
Net Property, Plant and Equipment 188,455 186,101 178,972
Goodwill 73,237 73,237 73,237
Trademarks 175,024 175,024 175,024
Total Assets 977,864 947,361 930,946
Accounts Payable 12,720 11,817 11,928
Accrued Liabilities 41,611 42,849 45,157
Total Current Liabilities 79,544 61,391 63,788
Total Noncurrent Liabilities 138,671 135,473 133,354
Total liabilities (Add total current liab + total noncurrent) 218,215 196,864 197,142
Common Stock 26,969 26,767 26,361
Class B Common Stock 18,254 17,767 17,285
Retained Earnings 40,809 33,767 57,225
Treasury Stock 1,992 1,992 1,992
Total Equity 759,649 750,497 733,804
Total liabilities and Shareholders Equity 977,864 947,361 930,946
Tootsie Roll Industries TRI TRI Competition or Industry Ratio** Ratio Benchmarks
Formula Year 1 Year 2 The Hershey Company
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 78.56% Less than 67%
Times Interest Earned Ratio *Earning from Operations/Interest Expense Higher the better, unless interest exp is 0.
Profitability Ratios
Gross Profit Percent *Total Gross Margin/Total Revenue 45.36% Depends on industry, higher is better
Return on Net Sales *Net Earnings/Total Sales 14.38% 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: