Hi again,Will check it out now, but I was working on this assignment (a real long one as you would see)Please find the solution attachedAll the best

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 we
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 he
visit the APA Guide: http://guides.rasmussen.edu/apa

Tootsie Roll Industries Inc.

Page 25 of Annual
Report

2015

2014

Total Revenue
Product Cost of Goods Sold
Rental and Royalty Cost
Total Gross Margin
Selling, Marketing and Administrative Expenses
Earnings from Operations
Income Taxes
Net Earnings

540,112
340,090
889
199,133
108,051
91,082
26,451
66,127

543,525
340,933
947
201,645
117,722
83,923
28,434
62,860

Gross Profit Margin
Profit Margin
Net Product Sales
% Change in Net Product Sales
% Change in Net Earnings

36.87%
12.24%
$536,692
-0.6%
5.20%

37.10%
11.57%
$539,895
0.05%
3.30%

Income Statement

Question 1: What is Tootsie Roll's Gross Profit Margin for 2015 ? (Hint: Divide Total Gross Margin by Total Revenue
does this figure represent? (Definition)
Gross Profit Margin for 2015 is 36.87%

"Gross profit margin is a financial metric used to assess a company's financial health and business model by revealing the
proportion of money left over from revenues after accounting for the cost of goods sold (COGS)"1

Question 2:What is Tootsie Roll's Profit Margin for 2015? (Hint: Profit margin is calculated by dividing Net Earnings by T
Sales). What does this figure represent?

Question 2:What is Tootsie Roll's Profit Margin for 2015? (Hint: Profit margin is calculated by dividing Net Earnings by T
Sales). What does this figure represent?
Net Profit Margin for 2015 is 12.24%
"Profit margins are expressed as a percentage and, in effect, measure how much out of every dollar of sales a company
actually keeps in earnings"2

Question 3: What are Tootsie Roll's earnings per share in the three years presented? (Hint: Check the income statemen
after Net Earnings for this information.)
2015: $1.04
2014: $0.99
2013: $0.94
*3

Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industrie
Inc. recognize revenue?
Tootsie Roll recognizes revenues "when products are delivered to customers and collectability is reasonably assured"

Question 5: Has Net Product Sales shown an increasing or decreasing trend over the past three years? Interpret this tren
Should this be a concern for the company? Why or why not?

Net Product Sales have increased by 0.05% from 2013 to 2014, then decreased by 0.6% from 2014 to 2015. This means t
sales had slightly increased from 2013 to 2014, yet again slightly decreased from 2014 to 2015. This, however should no
a reason for concern since the company, on its annual report stated that "Sales were, however, adversely affected by
translation of sales made in foreign currencies,principallyMexicoandCanada,dueto the relative strength of the U.S.
dollar.....Sales revenues from Wal-Mart Stores, Inc. aggregated approximately 23.7%, 23.7%, and 23.8% of net product sa
during the years ended December 31, 2015, 2014 and 2013, respectively."5

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?
As can be seen from the above analysis, Net Earnings have increased by 3.30% from 2013 to 2014, and by 5.20%
to 2015. This confirms the point stated in 5 above.

As can be seen from the above analysis, Net Earnings have increased by 3.30% from 2013 to 2014, and by 5.20%
to 2015. This confirms the point stated in 5 above.

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.

As stated in 6 above, Net Earnings shows an increasing trend while Net Product Sales had shown a slight increase from 20
to 2014, then a slight decrease from 2014 to 2015.
The difference in trends is not related to the operating decisions of the company but are a result of undertaking the
exchange rate risk that is common to all companies operating globally.

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

1. What is 'Gross Profit Margin'. Retrieved from http://www.investopedia.com/terms/g/gross_profit_margin.asp
2. Profit Margin. Retrieved from http://www.investopedia.com/terms/p/profitmargin.asp#ixzz4hJll7YEY
3. Earnings per Share. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_TR_2016.
4. Revenue recognition. Retrieved from
http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_TR_2016.pdf
5. Sales Trend. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_TR_2016.pdf

er from the Tootsie Roll website

/32821 For general APA help,

2013
543,383
350,960
937
191,486
119,486
72,000
23,634
60,849
35.24%
11.20%
$539,627

Margin by Total Revenue). What

usiness model by revealing the

d by dividing Net Earnings by Total

d by dividing Net Earnings by Total

ery dollar of sales a company

t: Check the income statement

ow does Tootsie Roll Industries,

bility is reasonably a...