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.
Income Statement
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
Page 25 of Annual
Report
2015
540.112
340.090
889
199.133
108.051
91.082
26.451
66.127
2014
0
0
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)
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 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.)
Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industrie
Inc. recognize revenue?
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?
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?
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.
References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide:
http://guides.rasmussen.edu/apa )
er from the Tootsie Roll website
/32821 For general APA help,
2013
0
0
Margin by Total Revenue). What
by dividing Net Earnings by Total
: Check the income statement
ow does Tootsie Roll Industries,
hree years? Interpret this trend.
? Interpret this trend.
o items trending the same?
ating decisions over the past
q/32821 ; APA Guide:
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.
Balance Sheet
Year 1
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 To
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 Indu
to value its inventory?
to value its inventory?
Question 3: Calculate Tootsie Roll Industry Inc's fixed asset turnover and interpret it's meaning. Show your work. (Hint: Fi
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
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 meanin
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
accounts experienced the largest change? (Hint: To find the amount of change, subtract the prior year amount from the c
amount. Positive answers mean the account has increased by that amount, negative answers mean the account has decre
amount.)
Question 7: Is the amount of current liabilities more or less than the long-term liabilities for the most recent year? What d
mean?
Question 8: Is the total stockholders' equity more or less than total liabilities for the most recent year? What does the res
Question 9: Calculate the debt ratio and current ratio for your company for the most recent year. Generally speaking,
ratios tell you? (Hint: Debt ratio is calculated as Total Liabilities/Total Assets; Current ratio is calculated as Total Curr
Current Liabilities.)
Question 10: What is the main reason for the change in stockholders' equity? What is the largest component of stockhold
Question 11: How many classes of common stock does the company have? For each class, how many shares are authorize
and outstanding? (To find outstanding shares, subtract any treasury stock for that class from the number issued to find th
outstanding.)
Question 12: Calculate the Return on Stockholder's Equity for the most recent year and interpret its meaning. Show your
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 )
n the text boxes below.
ar 2, etc. Example: If
eplace Year 2 with 2014,
trieved, whether from the Tootsie Roll website
outside sources.
swers.com/faq/32821 For general APA help,
Year 2
Year 3
ements. What method of depreciation does Tootsie Roll
tements. What method does Tootsie Roll Industries Inc. use
terpret it's meaning. Show your work. (Hint: Fixed Asset
ver for the most recent year and interpret its meaning. Show
/Average Accounts Receivable.)
r the most recent year and interpret its meaning. Show your
Sold/Average Inventory.)
trend from one year to the next? What account or
nge, subtract the prior year amount from the current year
negative answers mean the account has decreased by that
erm liabilities for the most recent year? What does the result
s for the most recent year? What does the result mean?
the most recent year. Generally speaking, what do these
; Current ratio is calculated as Total Current Assets/Total
What is the largest component of stockholders' equity?
For each class, how many shares are authorized, issued,
or that class from the number issued to find the number
ent year and interpret its meaning. Show your work. (Hint:
answers.com/faq/32821 ; APA Guide:
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.
Statement of Cash Flows
Year 1
Year 2
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
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 differ
these two numbers trending in the same direction? What is the largest adjustment item in the operating section for the m
recent year?
Question 3: What items in the investing section have created the largest cash inflow? Largest cash outflow? Did investing a
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 activitie
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
increased or decreased? Should this be a concenr for the company?
Now, locate the Auditors Report, titled "Report of Independent Registered Public Accounting Firm." Address the
questions related to this report.
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 )
from the Tootsie Roll website
2821 For general APA help,
Year 3
these two figures are different. Are
operating section for the most
ash outflow? Did investing activities
ented? What are the stock
esting and financing activities? What
to the end of the year? Has it
unting Firm." Address the following
orting include?
2821 ; APA Guide:
Required: Complete the purple cells for horizontal and vertical analysis for Tootsie Roll Industries using the follo
Vertical Analysis: (Financial Statement item/base amount), where your base amount is Total Revenue for the
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 workbo
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.
Income Statement
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
Balance Sheet
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
Year 1
540.112
340.090
889
199.133
108.051
91.082
26.451
66.127
Year 1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Treasury Stock
Total Equity
Total liabilities and Shareholders Equity
0
0
0
Tootsie Roll Industries
Formula
Liquidity Ratios
Current Ratio
Acid Test Ratio
*Total Current
Assets/Total Current
Liabilities
*(Cash & Cash
Equivalents
+Iinvestments +
Accounts Receivable
Trade)/Total Current
Liabilities
Asset Management Ratio
Inventory Turnover
*Product Cost of
Goods Sold/Average
Inventory
(remember, Avg Inv is
beginning year inv +
ending year inv,
result divided by 2.)
Solvency Ratios
Debt ratio
Times Interest Earned Ratio
*Total
Liabilities/Total
Assets
*Operating
Income/Interest
Expense
Profitability Ratios
Gross Profit Percent
*Total Gross
Margin/Total
Revenue
Return on Net Sales
*Net Earnings/Total
Sales
Earnings Per Share (EPS)
**Locate in research
(on company income
statement)
Market Analysis
Price Earning Ratio
**Locate in research
(on Internet)
Dividend Yield
**Locate in research
(on Internet)
*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 )
sis for Tootsie Roll Industries using the following formulas:
e your base amount is Total Revenue for the income statement and Total Assets for the balance sheet.
l use the analyses on this tab of the workbook to create your final project.
etrieved, whether from the Tootsie Roll website
outside sources.
nswers.com/faq/32821 For general APA help,
Year 2
Year 3
0
0
0
0
0
0
0
0
Year 2
Vertical Analysis
Year 1
Year 2
Vertical Analysis
Vertical Analysis
Year 1
Year 2
0
0
0
0
0
0
0
0
Year 3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Vertical Analysis
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
TRI
TRI
Competition or
Industry Ratio**
Year 1
Year 2
Year 1
Ratio Benchmarks
Greater than 1.
Ideally greater than 1,
but likely will be less
than 1.
Depends on industry,
higher is better
Less than 67%
Higher the better,
unless interest exp is
0.
Depends on industry,
higher is better
banswers.com/faq/32821 ; APA
Depends on industry,
higher is better
Depends on
company. Would
want to see stay
stable or increase,
not decrease.
Depends on
company. Remaining
steady is good.
Depends on
company. Remaining
steady is good.
lance sheet.
Horizontal Analysis
Year 3 to 1
Horizontal Analysis
Year 3 to 1
Purchase answer to see full
attachment