Problem: Prepare a four-column worksheet in Excel, column 1 to write the ratio names, column 2 to show the calculation of each ratio for Tootsie Roll Industries, column 3 to show the calculation of each ratio for The Hershey Company, and column 4 to include your DETAILED comments about each ratio and what the ratio tells you about each company under study. Calculate each of the following six ratios.
| |
Tootsie Roll Industries |
The Hershey Company |
Interpretation and comparison between the |
| Ratios |
Ratio |
two companies' ratios |
| Receivable Turnover Ratio |
|
|
|
| Average Collection Period |
|
|
|
| Assets Turnover Ratio |
|
|
|
| Return on Assets Ratio |
|
|
|
| Debt to Total Assets Ratio |
|
|
|
| Times Interest Earned Ratio |
|
|
|