Hershey's is a familiar name in snacks. There's a good chance you have recently enjoyed one of its products. The company manufactures confectionery products in a variety of packaged forms and markets them under more than 50 brands. Among the principal confectionery products in the United States are: Hershey's chocolates, Hershey's Kisses chocolates, Kit Kat, and Mr. Goodbar chocolate bars, Reese's peanut butter cups, Almond Joy candy bars, Good & Plenty candy, Mounds candy bars, Payday candy bars, and 5 th Avenue candy bars.

The following information was reported in a recent annual statement. For the year 2008, compute the ratios discussed in this chapter. If there is not sufficient information, describe what is missing and explain what you would do. Assume an income tax rate of34%.

Transcribed Image Text:

THE HERSHEY COMPANY Consolidated Statements of Income (in thousands of dollars except per share amounts) For the Years Ended December 31, 2008 2007 2006 Net Sales $4,946,716 $4,944,230 $5,132,768 Costs and Expenses: Cost of sales 3,375,050 3,315,147 3,076,718 Selling, marketing, and administrative Business realignment and impairment charges, net 1,073,019 895,874 860,378 94,801 276,868 14,576 Total costs and expenses 4,542,870 4,487,889 3,951,672 Income before Interest and Income Taxes 589,898 458,827 118,585 992,558 Interest expense, net 97,876 116,056 Income before Income Taxes 492,022 340,242 876,502 Provision for income taxes 180,617 126,088 317,441 $ 311,405 S 214,154 $ 559,061 Net Income Net Income Per Share-Basic-Class B Common Stock 1.27 .87 2.19 Net Income Per Share-Diluted-Class B Common 2.17 Stock 1.27 .87 Net Income Per Share-Basic-Common Stock 1.41 96 2.44 2.34 Net Income Per Share-Diluted-Common Stock 1.36 .93 Cash Dividends Paid per Share: Common Stock 1.1900 1.1350 1.030 1.0712 Class B Common Stock 1.0206 .925