Refer to the financial statements of Tootsie Roll Industries and the accompanying notes to its financial statements in Appendix A.
Instructions
(a) Calculate the receivables turnover ratio and average collection period for 2009. (Use ?oNet Product Sales.?? Assume all sales were credit sales.)
(b) Did Tootsie Roll have any potentially significant credit risks in 2009?
(c) What conclusions can you draw from the information in parts (a) and (b)?