Assignment
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: https://rasmussen.libanswers.com/faq/32821 For general APA help, visit the APA Guide: https://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Question 1: What is Tootsie Roll's Gross Profit Margin? (Hint: Divide Total Gross Margin by Total Revenue). What does this figure represent?
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?
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 informat ion.)
Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industries, Inc. recognize revenue?
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 com pany? 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.
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: https://rasmussen.libanswers.com/faq/32821 For general APA help, visit the APA Guide: https://guides.rasmussen.edu/apa
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?
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?
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)
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.)
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.)
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.)
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?
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
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.)
Question 10: What is the main reason for the change in stockholders' equity? What is the largest component of stockholders' equity?
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.)
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.)
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: https://rasmussen.libanswers.com/faq/32821 For general APA help, visit the APA Guide: https://guides.rasmussen.edu/apa
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 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?
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?
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 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?
Now, locate the Auditors Report, titled "Report of Independent Registered Public Accounting Firm." Address the following 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?
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.